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 – Bullish Trend Pattern, Range, Bullish Divergence, Parabolic Sar
On the daily 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 flat correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel resistance and support zones. The price which was respecting these zones so far has currently broken above the top of this range, we may consider this as another evidence of bullish pressure. Also, we have a bullish divergence that has formed between the first low that has formed on 24th March 2021 and the second low that has formed on 13th April 2021 based on the MACD indicator. In addition to this, based on the Parabolic Sar we could see that the dots are below the price, 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 – Range, Key Support Zone
Looking at the H4 chart we could see that, after the strong bullish move currently it looks like a flat correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel resistance and support zones. The price which is moving inside this range, reached the bottom of it, respected it and is bouncing higher from this zone. We also have a key support zone that has formed based on the top of the daily range and the bottom of the H4 range. Currently there are no signs opposing this bullish view, until this key support zone holds my view remains bullish here. If we get a valid breakout above the top of this range, we may then consider it as a validation for the bullish view and may expect the price to move higher further.
Technical Analysis & Forecast Summary
NZDCHF D1(Daily) Chart Analysis
- Bullish Trend Pattern, Range, Bullish Divergence, Parabolic Sar
NZDCHF H4(4 Hours) Chart Analysis
- Range, Strong Support Zone
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!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
Thank you yordan