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.
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.
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 & 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
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