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
-637503219859955230.png)
-637504172749111692.png)
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
-637505005367761736.png)
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
-637505013554031730.png)
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
