Hi Traders! NZDCHF short term forecast and technical analysis post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. 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!
On the H4 chart, the price is moving inside a range which started on 6th December 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has currently reached the bottom of this range. While measuring the first wave inside this range using the Fibonacci expansion tool the 61.8%(0.61778) Fibonacci expansion level coincides with the bottom of the range which makes this area a key support zone for us. In addition to this, we have a bullish divergence that has formed between the first low that has formed at 0.61879 and the second low that has formed at 0.61857 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, we have a bullish engulfing candle pattern that has formed which we may consider as yet another 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, until the key support zone holds my short term view remains bullish here and I expect the price to move higher further.
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term 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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