By: DailyForex.com
The NZD/CHF pair initially tried to rally during the day on Thursday but turned right back around as the New Zealand dollar sold off in general. I find this a very interesting pair to trade, because there isn’t much more of a shoe or “risk appetite” type of currency pair that you can find in the world. The New Zealand dollar of course is known for its “risky” behavior, as it is highly leveraged to commodities, while the Swiss franc is considered to be a bastion of stability.
So having said this, we have had a very negative turn of events in the New Zealand dollar during the session. We struggled here at the 0.72 level, to simply turn around. However, I would suggest that we have quite a bit of bullish pressure underneath, and as a result it’s only a matter of time before the buyers turned back into this market and form a supportive candle. With this, I’m looking for any type of support below in order to start buying. This is simply a case of a “higher high”, but we have to build up momentum to continue going higher at this point.
Patience
I believe that if you can use patience, you should get a decent trade signal fairly soon. I don’t even know if that happens today, but this is a pair that I am most certainly watching because I think there’s a long way to go. On the other hand, we could just simply break above the top of the candle during the session on Thursday, which is also a fairly strong signal to start buying. Either way, I don’t really have any interest in selling this pair, because I see how much bullish pressure there is underneath.
On this chart, I have a sloppy trend line, but it does show exactly what we been doing. This has been a nice uptrend, and I don’t see anything on this chart that tells me it’s over.
