Trading the NZD crash – Going short on EUR/CHF? [Video]
|Yesterday we looked at EURCHF from the fundamental side so don’t forget about the Swiss National Bank Interest Rate decision Thursday.
From the technical side we see clear indications that the pair has started a downtrend in that we have lower highs and lower lows in this bearish trend.
The Stochastic Oscillator is giving us bearish signals and MACD has passed from overbought to oversold.
Last night the New Zealand Dollar crashed based on the NZ government’s curbs on the housing market.
Finding technical opportunities might be difficult in these situations but what we look for are moves in price action against the trend.
For example, this clear downtrend on EURNZD daily chart was broken so we will look for an opportunity to sell EURNZD.
On the 4-hour chart, we are at resistance at $1.685 and we can wait for a bounce off resistance, and for the Stochastic Oscillator to show us some bearish signals, which it is not doing now.
When we see a downturn here, we can reevaluate.
Gold bounced off long-term support days ago and is showing us that the downtrend might be continuing.
Price has bounced off resistance and the Stochastic Oscillator has crossed from overbought to oversold so it might be time to look at an XAUUSD short again.
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