Hi Traders! Today I share with you my NZDCHF technical analysis and forecast post, we do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club Spoiler alert – free memberships are available! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
On the daily chart, the price was moving inside a range which started on 25th February 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which was respecting these two zones has broken above the top of this range and is holding above it, we may consider this as evidence of bullish pressure. We also have a bullish divergence that has formed between the first low that has formed at 0.62892 and the second low that has formed at 0.62365 based on the MACD indicator. Then the price moved higher and broke above the last high at 0.65035 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently, it looks like a correction is happening and also there are no signs opposing this bullish view. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
On the H4 chart, we have two key support zones that has formed, the first key support zone is formed by the 100%(0.64178) Fibonacci expansion level of the first wave and the 61.8%(0.63899) Fibonacci expansion level of the second wave. The second key support zone is formed by the 161.8%(0.63387) Fibonacci expansion level of the first wave and the 100%(0.63334) Fibonacci expansion level of the second wave. Currently, the price which is moving lower has reached the first key support zone. We also have a bullish divergence that has formed between the first low that has formed at 0.64023 and the second low that has formed at 0.63941 based on the MACD indicator which we may consider as evidence of bullish pressure. So everything looks good here for the bulls and until the two key support zones hold my view remains bullish here and I expect the price to move higher further.
NZDCHF D1(Daily) Chart Analysis
NZDCHF H4(4 Hours) Chart Analysis
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.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
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