New Zealand dollar finding support against Swiss franc again
The New Zealand dollar has pulled back a bit during the trading session on Friday, finding support at the 50-day EMA to turn around and for a hammer. This is obviously a very bubbly sign and it looks as if the New Zealand dollar is going to try to take out the top of the consolidation area at the 0.64 CHF level. If it does, that would form a “W pattern” which of course is a very bullish sign. A break above there then freeze the market to go another 200 pips higher based upon the structure of the pattern.
Ultimately, the market is the breakdown below the hammer from the trading session be formed, it’s very likely that the market would breakdown in resource the bottom of the consolidation area, reaching down towards the 0.6 to handle. All things being equal, you should also look at this as a potential barometer for risk appetite, rising as people start looking to take advantage of higher yielding currency such as a New Zealand dollar. The Swiss franc of course is a safety currency so that has a lot to do with where we go next. All things being equal it looks as if we are trying to make a move to the upside and at the 0.64 level being broken, I would not only be bullish, but I would be adding to a breakout above the candlestick from the Friday session. We could be seeing a bottoming process, and the next couple of days should give us an idea in which direction we should be trading. Other things as you can pay attention to our stock markets and the like, as they show just how much risk people are willing to put up with out there, which is the main driver of this pair.
Ultimately, the market is the breakdown below the hammer from the trading session be formed, it’s very likely that the market would breakdown in resource the bottom of the consolidation area, reaching down towards the 0.6 to handle. All things being equal, you should also look at this as a potential barometer for risk appetite, rising as people start looking to take advantage of higher yielding currency such as a New Zealand dollar. The Swiss franc of course is a safety currency so that has a lot to do with where we go next. All things being equal it looks as if we are trying to make a move to the upside and at the 0.64 level being broken, I would not only be bullish, but I would be adding to a breakout above the candlestick from the Friday session. We could be seeing a bottoming process, and the next couple of days should give us an idea in which direction we should be trading. Other things as you can pay attention to our stock markets and the like, as they show just how much risk people are willing to put up with out there, which is the main driver of this pair.