Hi Traders! NZDCHF short term forecast and technical analysis post is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. 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!. Now, let’s start our analysis from the highest timeframe which will be the H4 chart here.
On the H4 chart, the price which was moving lower created a double wave down with the price reaching a key support zone formed by the 61.8%(0.58983) Fibonacci expansion level of the first wave. The price respected this zone and moved higher from it, in addition to this, we also had a bullish divergence that had formed between the first low that has formed at 0.59009 and the second low that has formed at 0.58985 based on the MACD indicator. 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. Currently, it looks like a correction is happening and also, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
On the H1 chart, 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 price which is 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. In addition to this, 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 this as yet another evidence of bullish pressure. Until the key support zone shown in the image below (marked in green) holds my short term view remains bullish here and I expect the price to move higher further after pullbacks.
NZDCHF H4(4 Hours) Chart Analysis
NZDCHF H1(1 Hour) 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 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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