Despite the bad situation with Swiss retail sales, national GDP for the first quarter rose by +0,6% quarter on quarter and by +1,7% year on year. Swiss Federal Statistical Office stated: “Private consumption (+0.4%) saw slightly above-average growth for the first time in six quarters. Consumption expenditures increased in almost all segments and most significantly in healthcare, followed by mobility”.
As a result, the Swiss national currency popped up against the NZD in the short-term period. But the situation stabilized soon and the correction up in NZD/CHF went on.
RBNZ Governor Orr could consolidate this success by verbal interventions on Tuesday. But if he gives a hint that the monetary authorities are ready for weakening the policy – it will influence NZD in a negative way.
Other than Orr’s speech - there is not a lot of news to pay attention to. We recommend to take a short look at New Zealand annual budget release on Wednesday.
For this reason, we suppose that technical factors in NZD/CHF will be at high priority
Technical analysis
On the daily time frame the pair formed a bullish engulfing that is a bullish signal for a reversal.
We see an attempt to break up the trend line. Simultaneously the pair is approaching the 23,6% Fibo correction level.
Indicators (Parabolic SAR, MACD, Williams%R) are reversing – this is positive for bulls.
Summary: we think that it is possible to open longs in NZD if the pair breaks the first resistance level at 0,65984. In this case the targets for the price are 0,66716 and 0,67042.
As a result, the Swiss national currency popped up against the NZD in the short-term period. But the situation stabilized soon and the correction up in NZD/CHF went on.
RBNZ Governor Orr could consolidate this success by verbal interventions on Tuesday. But if he gives a hint that the monetary authorities are ready for weakening the policy – it will influence NZD in a negative way.
Other than Orr’s speech - there is not a lot of news to pay attention to. We recommend to take a short look at New Zealand annual budget release on Wednesday.
For this reason, we suppose that technical factors in NZD/CHF will be at high priority
Technical analysis
On the daily time frame the pair formed a bullish engulfing that is a bullish signal for a reversal.
We see an attempt to break up the trend line. Simultaneously the pair is approaching the 23,6% Fibo correction level.
Indicators (Parabolic SAR, MACD, Williams%R) are reversing – this is positive for bulls.
Summary: we think that it is possible to open longs in NZD if the pair breaks the first resistance level at 0,65984. In this case the targets for the price are 0,66716 and 0,67042.