NZD/CHF Price Analysis: Bulls looking for a daily extension
|- NZD/USD is on the verge of a bullish extension from a daily persp[ective.
- Hidden bullish divergence indicates a trend continuation on the 4-hour time frame.
NZD/CHF has been making strong progress over the course of the month on the back of risk-on markets and prospects of a faster rate of tightening at the Reserve Bank of New Zealand.
The following is a top-down analysis of the technical outlook from a daily point of view. The bulls are seeking an upside extension at this juncture following a pullback into the horizontal daily support that is competed of the 38.2 Fibonacci retracement level and prior daily highs.
NZD/CHF daily chart
NZD/CHF 4-hour chart
The price on the 4-hour chart has been supported with hidden bullish divergence with the RSI and that is likely to underpin the move to the upside as it is regarded as a trend continuation signal. With that being said, there are prospects of a pullback into the supporting territory that is comprised of the dynamic counter trendline and horizontal support. In such a scenario, it will offer the bulls a discount by engaging at the supporting structure.
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