Forex Market Ideas

NZDCHF Technical Analysis And Forecast

Hi Traders! NZDCHF technical analysis and forecast 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! here). Now, let’s start our analysis from the highest timeframe which will be the daily chart here.

NZDCHF D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Divergence

On the daily chart, the price which is moving higher has reached a key resistance zone formed by the 100% (0.64275) Fibonacci expansion level of the big wave and the 100%(0.64572) Fibonacci expansion level of the small wave we have. The price has currently created a false break of this key resistance zone which we may consider as evidence of bearish pressure. Also, we have a bearish divergence that has formed between the first high that has formed at 0.63874 and the second high that has formed at 0.65014 based on the MACD indicator which we may consider as evidence of bearish pressure. We may now move down to one timeframe lower and see if we can find evidences supporting this bearish view.

 

 

NZDCHF H4(4 Hours) Chart Analysis – ADX Indicator, Bearish Convergence

On the H4 chart, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line), and the main signal line (silver line) reads value over 25, we may consider this as evidence of bearish pressure. Also, the price has created a bearish divergence between the first high that has formed at 0.64976 and the second high that has formed at 0.65014 based on the MACD indicator. Then the price moved lower and broke below the low at 0.64661 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence. Hence as per the book scenario, after a bearish convergence, we may look for possible corrections and then further continuation to the downside. Currently, it looks like the correction that we are looking for is happening. Until the daily key resistance zone holds my view remains bearish here and I expect the price to move lower further.

 

Technical Analysis & Forecast Summary

NZDCHF D1(Daily) Chart Analysis 

  • Key Resistance Zone, Bearish Divergence

NZDCHF H4(4 Hours) Chart Analysis 

  • ADX Indicator, Bearish Convergence

 

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 sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.

Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join us in our live market analysis, on daily basis, and improve your trading with us.

Join Traders Academy Club Now

Also, you can get one of our strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

 

 

Advertisement

Click To Join Our Community Telegram Group

Yordan Kuzmanov

Recent Posts

Futures Subdued In Lead Up To Economic Data, Powell Speech

U.S. stock index futures were little changed on Thursday as investors awaited a fresh batch…

5 hours ago

Silver Technical Analysis And Short Term Forecast

Hi Traders! Silver technical analysis and short term forecast is here. We do our analysis…

8 hours ago

SP500 Short Term Forecast Update And Follow Up

Hi Traders! SP500 short term forecast update and follow up is here. On November 5th,…

1 day ago

GBPCAD Short Term Forecast And Technical Analysis

Hi Traders! Today I am sharing with you the GBPCAD technical analysis and short term…

1 day ago

Bitcoin Short Term Forecast Update And Follow Up

Hi Traders! Bitcoin short term forecast follow up and update is here. On August 28th,…

2 days ago

EURNZD Technical Analysis And Short Term Forecast

Hi Traders! EURNZD technical analysis and short term forecast post is here. We do our…

2 days ago