Hi Traders! NZDCHF short term forecast follow up and update is here. On August 30th I shared this “NZDCHF Short Term 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 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.
Based on the above-mentioned analysis my short term view was bullish here and I was expecting the price to move higher further after pullbacks until the key support zone holds. The price action followed my analysis here exactly as I expected it to. After the bullish trend pattern, we had a pullback with the price creating a bullish hidden divergence between the first low that has formed at 0.59369 and the second low that has formed at 0.59524 based on the MACD indicator. The price then moved higher and provided a nice move to the upside until it was blocked by a bearish divergence.
We then had a deeper pullback and then the price moved higher again and provided another excellent move to the upside before it moved lower.
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted to us and took the right action according to that.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
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