Technical Analysis – NZDCHF Forecast

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NZDCHF Forecast Update And Follow Up

Hi Traders! Today’s post is about NZDCHF forecast based on technical analysis. As I do with every technical analysis post, multi-time frame analysis method will be applied in order to look for all the possible evidences that supports my view on the current trading timeframe and two timeframes higher. We will start our analysis from the highest timeframe now which will be weekly chart here.

NZDCHF W1(Weekly) Chart Analysis – Bearish Channel, ADX Indicator

On the weekly chart the price is moving inside a bearish channel, this channel is formed by the highs and lows reaching parallel support and resistance zones. The price which is respecting these two zones so far has currently reached below the middle of this channel after bouncing from the top and it still has room lower towards the bottom of this channel. Also in addition to this the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25. So we may now drop down to one timeframe lower and see if we have evidences that supports this bearish view.

Technical Analysis - NZDCHF Forecast

 

 

NZDCHF D1 (Daily) Chart Analysis – Potential Bearish Hidden Divergence

On the daily chart we have a potential bearish hidden divergence that has formed between the first high at 0.65510 and the second high at 0.63253 based on the MACD histogram indicator which we may consider as an evidence of bearish pressure. We may now drop down to one more timeframe lower and see if we can find evidences that supports this bearish view.

Technical Analysis - NZDCHF Forecast

 

 

NZDCHF H4 (4 Hours) Chart Analysis – Bearish Trend Pattern, Two Important Resistance Zones, Volumes Indicator

On the H4 chart we have a bearish trend pattern that has formed, generally as per the book scenario after a bearish trend pattern we may look for corrections and then further continuation lower. Currently it looks like a correction is happening. We have two important resistance zones that has formed, the first resistance zone is formed by the 38.2% fibonacci retracement level of the bearish trend pattern at 0.63442, the 100% fibonacci extension level of the first wave we have at 0.63387 and a massive resistance area. Whereas the second resistance zone is formed by the 50% fibonacci retracement level at 0.63837, the 161.8% fibonacci extension level of the first wave at 0.64038 and the 200 moving averages. Also the volumes are dropping lower on the volumes indicator which we may consider as an evidence of bearish pressure. Until these two important resistance zones hold my view remains bearish here.

Technical Analysis - NZDCHF Forecast

 

Technical Analysis & Forecast Summary

NZDCHF W1(Weekly) Chart Analysis 

  • Bearish Channel, ADX Indicator

NZDCHF D1 (Daily) Chart Analysis

  • Potential Bearish Hidden Divergence

NZDCHF H4 (4 Hours) Chart Analysis 

  • Bearish Trend Pattern, Two Important Resistance Zones, Volumes 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 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.

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Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

 

 

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