NZD/CHF Technical Analysis - NZD/CHF Trading: 2022-10-20

NZD/CHF Technical Analysis Summary

Above 0,571

Buy Stop

Below 0,549

Stop Loss

Indicator Signal
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

NZD/CHF Chart Analysis


NZD/CHF Technical Analysis

On the daily timeframe, NZDCHF: D1 formed a triangle. He must exit it to the top before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if NZDCHF rises above its most recent high of 0.571. This level can be used as an entry point. Initial risk cap possible below the Parabolic signal, the last 2 down fractals and the low since March 2020: 0.549. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (0.549) without activating the order (0.571), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of Forex - NZD/CHF

The decline in inflation in New Zealand was less than expected. Will NZDCHF quotes continue to rise?

Such dynamics is observed with the weakening of the Swiss franc and the strengthening of the New Zealand dollar. The New Zealand Consumer Price Index rose 7.2% y/y in the 3rd quarter compared to +7.3% y/y in the 2nd quarter. Investors believe that this is a slight decline. Inflation still remains around a 32-year high. Accordingly, there is a chance that the Reserve Bank of New Zealand (RBNZ) will raise rates for the 9th time in a row at its next meeting on November 23rd. Now it is 3.5%. Some players are hoping for an increase in rates immediately by 0.75% to 4.25%. Recall that at the height of the economic crisis of 2007/2008, the RBNZ rate was equal to 8.25%. October 21: New Zealand Trade Balance and Credit Card Spending. On October 24, China Trade Balance will be published. These economic data may affect the dynamics of the New Zealand dollar. China is one of the main buyers of New Zealand goods. October 20 will be published Switzerland Trade Balance, which may affect the dynamics of the Swiss franc. The next meeting of the Swiss National Bank (SNB) will not be soon - on December 15th. Its rate is now equal to 0.5% with inflation in September of 3.3% y/y. Note that before that it was negative since the end of 2014. It is difficult to say whether the SNB will continue to raise rates now. According to his forecast, inflation in Switzerland for the whole year will slightly exceed 3% y/y, and in 2023 it will decrease to 2.4% y/y and in 2024 - to 1.7% y/y.