NZDCHF possible Swing Trade entry?
Downsize risk short, medium term:
- RZB with additional rate cuts (very likely)
- NZD weakens further due to virus fears
- NZD is a risk sensitive asset
- Trader sentiment is still short
- Markets start falling again would push more into save heaven CHF
However it seems that the economic fundamentals remain reasonably strong. And even with additional rate cuts the carry against CHF will still remain positive. I started with an initial first position long at 0.60. I will remain on the lookout for further buy signals on the daily time-frame and prepare to increase my long position. Time Frame: A few weeks
Downsize risk short, medium term:
- RZB with additional rate cuts (very likely)
- NZD weakens further due to virus fears
- NZD is a risk sensitive asset
- Trader sentiment is still short
- Markets start falling again would push more into save heaven CHF
However it seems that the economic fundamentals remain reasonably strong. And even with additional rate cuts the carry against CHF will still remain positive. I started with an initial first position long at 0.60. I will remain on the lookout for further buy signals on the daily time-frame and prepare to increase my long position. Time Frame: A few weeks