NZDCHF - Long-term buy signal

Tomasz Wisniewski Axiory Global Ltd.

Last week, we were talking here about the AUDCHF, now time for a smaller brother – NZDCHF. Setup, which is present here is great for the long-term investors as it is present on the H4/D1 chart. Our outlook on this instrument is positive.

From the August to the middle of October, the price created an inverse head and shoulders pattern. On the 15^th of October, the price broke the neckline (black), which gave us a buy signal. The NZDCHF listened and went higher. The beginning of the last week, brought us a bearish correction (red lines), which aimed the neckline, to test it as a closest support. Test was positive for the buyers and the pair went higher. Correction was a wedge and the new week brings us a breakout of the upper line of this pattern, which is a legitimate signal to go long. That is the beauty of the Price Action!.

Positive sentiment stays here as long as we are above the yellow horizontal support. That gives us a lot of space for a bearish correction but in my opinion, after today's breakout, the price should mostly aim higher.

Tomasz Wisniewski
Chief Analyst Alpari Research & Analysis Ltd (UK)

Author

Tomasz Wisniewski

Axiory Global Ltd.

Tomasz was born in Warsaw, Poland on 25th October, 1985.

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