The New Zealand dollar has fallen hard against the Swiss franc early on Thursday, only to bounce again and see strength again.
NZD/CHF
The New Zealand dollar has fallen pretty significantly during the early part of the trading session on Thursday against the Swiss franc, showing signs of hesitancy, but it's also worth noting that we have, in fact, bounced from the 0.4740 level, an area that previously had been resistance. This market continues to be very noisy, but I do like the idea of buying it in general, and with that being the case, this bounce is something that I am definitely interested in.
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I believe at this point the market is going to respect the 0.47 level as a bit of a floor, and the market also sees the 50-day EMA reaching towards it.
Golden Cross and Carry Trade Dynamics
Recently, we had a Golden Cross where the 50-day EMA has broken above the 200-day EMA, which is a bullish sign from a longer-term standpoint, so it'll be interesting to see how that plays out. Ultimately, this market, I believe, continues to be one that you are looking for short-term dips to take advantage of, as it is so bullish in general.
Overall, I think this market continues to be one that, because it gets you paid at the end of every day, it makes sense that carry traders have flocked to it. In fact, carry trading seems to be the game here, not only in this pair, but overall. Traders are looking for a bit of swap. This market is a good one because it marries up the Swiss franc, which is backed by zero interest rates, and the New Zealand dollar, which is expected to see an interest rate hike soon. With this, I believe that the dips will continue to be attractive for most traders.
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