Hi Traders! Today I share with you my NZDCHF forecast and technical analysis 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 Convergence, Heikin Ashi Candles, ADX Indicator
On the daily chart, the price which was 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. The price respected this zone and bounced higher from this zone. Also, the price which was moving lower created 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. Then the price moved higher and broke above the last high at 0.63151 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. In addition to this, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider these as other evidences of bullish pressure. We may now move down to lower timeframe and look for evidences supporting this bullish view.
NZDCHF H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Higher Highs, ADX Indicator, Two Strong Support Zones
On the H4 chart, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening. Also, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones hold my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
NZDCHF D1(Daily) Chart Analysis
- Key Support Zone, Bullish Convergence, Heikin Ashi Candles, ADX Indicator
NZDCHF H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Higher Highs, ADX Indicator, Two Strong Support Zones
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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
