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.
NZDCHF D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence, Stochastic Oscillator
On the daily chart, the price which is moving lower has reached a key support zone formed by the 261.8%(0.61024) Fibonacci expansion level of the first wave and the 61.8%(0.60740) Fibonacci expansion level of the second wave. Also, we have a bullish divergence that has formed between the first low that has formed at 0.61820 and the second low that has formed at 0.60740 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme, which we may consider as yet another evidence of bullish pressure. So based on all this, my short term view is bullish here and we may now move down to lower timeframe and look for evidences supporting this bullish view.
NZDCHF H4(4 Hours) Chart Analysis – Multiple False Breaks, Bullish Divergence, CCI Indicator
Looking at the H4 chart, we could see that the price which is moving lower has created multiple false breaks with a bullish divergence between the first low that has formed at 0.60876 and the second low that has formed at 0.60740 based on the MACD indicator, we may consider these as evidences of bullish pressure. We also have this bullish divergence on the CCI indicator as well, which we may consider as yet another evidence of bullish pressure. So based on all this my view here is bullish and if the price moves higher and if we get a valid breakout above the high at 0.61450 we may then consider it as a validation for the bullish view and may expect the price to move higher further. Alternatively if the price moves lower, breaks and holds below the key support zone then this bullish view will be invalidated.
Technical Analysis & Forecast Summary
NZDCHF D1(Daily) Chart Analysis
- Key Support Zone, Bullish Divergence, Stochastic Oscillator
NZDCHF H4(4 Hours) Chart Analysis
- Multiple False Breaks, Bullish Divergence, CCI Indicator
Trading Tips
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
