Hi Traders! NZDCHF bullish convergence provides bullish opportunity for us. A detailed analysis of this buy setup is as follows:
NZDCHF D1 Chart:
On the daily chart the price has created a bullish divergence and then the price moved higher creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario we may look for corrections to happen and then continuation to the upside. Currently it looks like a pullback is happening, we may now look for more bullish evidences on lower timeframes in order to join the bulls.
NZDCHF H4 Chart:
On the H4 chart we have a five leg structure that has completed itself and then the price which was moving lower reached the critical area that has formed by the 50% retrace zone and the fibo expansion level of the cycle and is currently moving higher. We also have a good downtrend line that has formed and if we get a valid breakout above this dynamic resistance, we may consider it as an evidence of bullish pressure, we may then start looking for buys with more bullish evidences.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
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