Hi Traders! NZDCHF forecast follow up and update is here. On October 7th I shared this “NZDCHF Forecast And Technical Analysis” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
My Idea
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 H4(4 Hours) Chart Current Scenario
In this pair, on the H4 chart my view was bullish and I was expecting the price to move higher further until the two key support zones hold. The price action followed my analysis exactly as I expected it to here. The price which was moving lower reached the first key support zone, respected it and bounced higher from this zone. We also had 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. The price moved higher from the first key support zone then we had a pullback with the price reaching this key support zone again, retested it but the price didn’t break below the last low at 0.63941. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. The price then moved higher further as I expected it to and delivered around 200 pips move so far.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
