NZD/CHF has established a clear uptrend on the daily as well as lower timeframes. The first confirmation of an uptrend could have been the break and close above the 50 Simple/Exponential Moving Average as well as the downtrend trendline, which has occurred back on August 28th.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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Analysis Details:
NZD/CHF symbol on the MT4 platform
Type: Bullish
Key support levels: 0.6100, 0.6080
Key resistance levels: 0.6185, 0.6200
Price Action:
Since August 28th, NZD/CHF has reached a 0.6184 high, where it broke yet another simple downtrend trendline. The correctional move down followed and was stopped by the 38.2% Fibonacci retracement level, applied to the uptrend started on August 20th. The rejection of the Fibonacci support at 0.6082 and 50 Simple Moving Average was very clean, which shows that bulls are strongly defending this support level. Therefore, as long as daily closing prices remain above today’s low at 0.6082, NZD/CHF will continue the journey north.
The key resistance is located at 0.6202, which almost precisely corresponds to the 0.6200 phycological level. At the same time, it is confirmed by two Fibonacci retracement levels, 88.6% Fibs applied to the last wave down where NZD/CHF bottomed out, and 61.8% Fibs applied to the last wave up, where NZD/CHF topped out.
This means that there should be at least 70 pips growth potential for the pair this week. Although if the price will manage to break above 0.6200 with confidence, a long term uptrend might take place.
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