NZDCHF Looking For Another Push Higher
The recent breakout trade in NZDCHF saw the market quickly hitting the initial target at .6540. While price stalled initially, the market is now testing above the level once again and with indicators both bullish, there is scope for a continuation higher. The retail community is holding an almost 90% short position in NZD, adding further support for a continued rally. Above here, .6622 and .6722 are the next targets to note.
Key Data to Watch
Little in the way of key data for either currency this week. With that in mind, the focus will be on US data and risk flows. Two big US releases (CPI & retail sales) might pose a challenge on any USD upside, which would likely hit NZD hardest. However, should data disappoint at all, this could easily provide the catalyst for a continued push higher.