A quick look at NZDCHF

NZDCHF is one of G10 currency crosses that is experiencing the biggest moves today with an almost 2% drop at press time. The move is driven by a strengthening of the Swiss franc which recovered some ground after a few days of weakness triggered by turmoil around Credit Suisse. Meanwhile, Antipodean currencies are on the backfoot with NZD being top laggard among G10 peers.

Taking a look at NZDCHF chart at D1 interval, we can see that the pair has been trading in a downward channel since late-January 2023. The pair experienced strong gains between March 12 and March 19, 2023 with NZDCHF bouncing off the 0.5635 support zone near the lower limit of the channel and climbing towards the upper limit in the 0.5825 area. However, bulls encountered a mix of resistances there - previous price reactions, 50-session moving average (green line) and 38.2% retracement of the upward move launched in October 2022 - and the pair started to pull back. A supply side reaction to the aforementioned resistances as well as a strong downward move we are observing today gives hope that the pair may be set for another test of the 0.5635 support and a lower limit of the channel.

A key near-term event to watch for NZDCHF traders is the Swiss National Bank decision on Thursday, 8:30 am GMT. SNB is expected to hike rates by 50 basis points but scope for surprise is massive given recent issues with Swiss banks. 

NZDCHF at D1 interval. Source: xStation5