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 – Strong Support Zone, Bullish Hidden Divergence, Continuing Bullish Divergence, Parabolic Sar
On the daily chart, the price which was moving lower reached a strong support zone respected it and bounced higher from this zone. Also, we could see that the price which was moving lower has created multiple false breaks with bullish hidden divergence between the first low that has formed at 0.60740 and the second low that has formed at 0.63174 based on the MACD indicator, we may consider these as evidences of bullish pressure. In addition to this, the price has also created a continuing bullish divergence between the first low that has formed at 0.63174 and the second low that has formed at 0.62074 based on the MACD indicator which we may consider as another evidence of bullish pressure. 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. Also, currently there are no signs opposing this bullish view. We may now move down to lower timeframe and look for evidences supporting this bullish view.
NZDCHF H1(1 Hour) Chart Analysis – Heikin Ashi Candles, Bullish Trend Pattern, Higher Highs, ADX Indicator
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 was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as another evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening. Also, we could see that the price which is moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. 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. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones hold my short term view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
NZDCHF D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Hidden Divergence, Continuing Bullish Divergence, Parabolic Sar
NZDCHF H1(1 Hour) Chart Analysis
- Heikin Ashi Candles, Bullish Trend Pattern, Higher Highs, ADX Indicator
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.
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Arvinth Akash
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