NZD/CHF analysis for May 5, 2021

Looking at the graph on the four-hour time frame, we see that we are in a corrective channel after reaching the previous high at 0.67669. Then the NZD/CHF pair makes a pullback forming this new channel. We find the support at 0.65000 and then bounce again, heading to the top line of the channel. Above, moving averages await us, and customers now expect a breakthrough of that line of resistance, and pre-consolidation zones around 0.66000, so that we can move freely towards 0.67500.

For the bearish option, we need to pull back below the moving averages and bearish consolidation around the bottom line of the channel and then break below it for a clean bearish signal. Looking at the MACD indicator, we see that the blue MACD line crossed over the signal line forming a bullish signal based on that, indicating that there may be a continuation and growth of the NZD/CHF pair to higher levels on the chart. Consumer prices in Switzerland rose for the first time in the last fifteen months in April, data from the Federal Bureau of Statistics showed this morning.

The consumer price index rose 0.3% year-on-year in April, after falling 0.2% in March. That was in line with economists’ expectations. On a monthly basis, consumer prices rose 0.2% in April, after rising 0.3% in the previous month. That was in line with expectations.

• NZD/JPY analysis for May 5, 2021

The core CPI remained unchanged year-on-year in April, up 0.2 percent from the previous month. MUFG economists expect kiwis to continue to enjoy support as expectations of rising interest rates progress. A stronger NZD supports the basics: we continue to see the economy recover and eventually progress in anticipation of an increase in the rate will help support NZD. Interest rate expectations for the end of 2022 remain stable, but two-year yields are starting to grow more towards the end of the month, and we see positive risks in the coming months as the world economy grows.