Hi Traders! NZDUSD technical analysis and forecast 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! Let’s start our analysis from the highest timeframe which will be the daily chart here.
NZDUSD D1(Daily) Chart Analysis – Bullish Convergence, ADX Indicator
On the daily chart, we have a bullish divergence that has formed between the first low that has formed at 0.69230 and the second low that has formed at 0.68051 based on the MACD indicator. Then the price moved higher and broke above the high at 0.71051 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. 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 another evidence of bullish pressure. We may now move down to one timeframe lower and look for evidences supporting this bullish view.
NZDUSD H4(4 Hours) Chart Analysis – Range, Key Support Zones, Bullish Divergence
Looking at the H4 chart, we could see that currently it looks like a flat correction is happening in the form of a range. While measuring the first wave inside this range we have two key support zones that has formed. The first key support zone is formed by the 61.8%(0.70972) – 100%(0.70609) Fibonacci expansion levels of the first wave and the bottom of the range. The second key support zone is formed by the 161.8%(0.70023) Fibonacci expansion level of the first wave. The price has currently reached the first key support zone and also we have a bullish divergence that has formed between the first low that has formed at 0.70759 and the second low that has formed at 0.70730 based on the MACD indicator which we may consider as evidence of bullish pressure. Until both the key support zones hold my view remains bullish here. If the price breaks and holds above the top of this range we may then consider it as validation for the bullish view and may expect the price to move higher further.
Technical Analysis & Forecast Summary
NZDUSD D1(Daily) Chart Analysis
- Bullish Convergence, ADX Indicator
NZDUSD H4(4 Hours) Chart Analysis
- Range, Key Support Zones, Bullish Divergence
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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Happy Trading!
Arvinth Akash
Traders Academy Club Team
