NZDCHF - Long-term buy signal
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 15th 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.
