NZD/CHF Price Analysis: Volatility hindered progress, bulls hold on
|- NZD/CHF under pressure in Asian market volatility.
- Bulls will continue to monitor for bullish structure given the daily outlook remains bullish.
As per the prior analysis, NZD/CHF Price Analysis: Bulls holding firm at 4-hour support, the market moved higher to enable a trailing stop loss to be moved to breakeven, and then along came Powell.
The Federal Reserve's chair, Jerome Powell, spoke in a WSJ webinar and was questioned on his outlook for the economy and the recent volatility in the bonds.
The event resulted in volatility and a sell-off in higher beta currencies such as the kiwi as the US dollar rallied.
CHF was the worst performer vs the greenback which helped to slow the downside in NZD/CHF, but the cross gave way to supply at a key support area while the dollar continues to pressure the kiwi.
Prior analysis, 4-hour chart
The price has been sticking to the entry point, but an upside move to break recent highs will trigger the breakeven point for a free rise towards the target.
Live market, 4-hour chart
As illustrated, the market is just pips away from the breakeven stop loss.
Should the market restructure a bullish scenario on the 4-hour time frame, an optimal reentry point can be established in the case that the current position is stopped-out for a scratch trade.
Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.