Technical Analysis – NZDUSD Short Term Buy Idea

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Technical Analysis - NZDUSD Forecast

Hi Traders NZDUSD short term buy idea technical analysis is here. As we do in every technical post we are going to perform the multi-time frame analysis on this pair in order to find the possible trading opportunities. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. This pair definitely looks interesting at the moment so as usual we will start our analysis from the highest timeframe which would be the daily chart here.

NZDUSD D1 (Daily) Chart Analysis – Bullish Trend Pattern, Stochastic Oscillator

On the daily chart we have a bullish trend pattern that has formed based on the price action and currently it looks like this pattern has completed itself. So as per the book we may now look for pullbacks to happen and currently it looks like the pullback that we are looking for is happening. In addition to this we also have bullish evidences in the form of the Stochastic Oscillator which has also reached its extreme. We may now drop down to lower timeframes to see if we have evidences that supports this bullish view.

Technical Analysis - NZDUSD Short Term Buy Idea

 

 

NZDUSD H4 (4 Hours) Chart Analysis – Bullish Divergence

On the H4 chart the price which is moving lower has created a bullish divergence on both the MACD histogram and the moving averages between the first low that has formed at 0.66729 and the second low that has formed at 0.65806 which we may consider as evidences of bullish pressure. So the bottom line here is that the H4 has evidences that supports this bullish view. Now lets move down to our current trading timeframe H1 and see if it supports this bullish view.

Technical Analysis - NZDUSD Short Term Buy Idea

 

 

NZDUSD H1 (1 Hour) Chart Analysis – Bullish Divergence, ADX Indicator

The H1 chart fits in perfectly with our bullish view we have a  bullish divergence that has formed on both the MACD histogram and the moving averages between the first low that has formed at 0.66064 and the second low that has formed at 0.65806 which we may consider as evidences of bullish pressure. In addition to this the ADX indicator gave bullish signal at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25. If the price breaks above the last high at 0.66149, we may then look for pullbacks and buys with more bullish evidences (evidences could be in the form of candle stick patterns, false breaks, trend line breakout etc… supporting the bullish view).

 

Technical Analysis - NZDUSD Short Term Buy Idea

Technical Analysis & Forecast Summary

Lets recap and summarize the analysis we had so far:

NZDUSD D1 (Daily) Chart Analysis:

  • Bullish Trend Pattern, Stochastic Oscillator

NZDUSD H4 (4 Hours) Chart Analysis:

  • Bullish Divergence

NZDUSD H1 (1 Hour) Chart Analysis:

  • Bullish Divergence, 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.

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.

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 me in my live trading rooms, on daily basis, and improve your trading with us.

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Also you can get one of my 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

 

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Chris
Chris
8 months ago

Thank you Yordan, it was so useful

0
Ben
Ben
8 months ago

Thanks for the analysis

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Rich
Rich
8 months ago

Thanks for the idea Yordan

0