- NZD/CHF bears stepping in as the bullish impulse wears thin.
- Bears seeking a break of hourly support and a target of old resistance structure.
As per this week's, The Watch List: Gold, USD/JPY, AUD/USD, EUR crosses and many more, the price has indeed decelerated and is starting to get interesting, moving higher up on the priority of the watchlist.
NZD/CHF, day trading
The price has formed a W-formation and would now be expected to retrace to a 38.2% Fibo confluence with prior highs.
However, the hourly chart remains in a bullish territory but can be monitored for bearish structure for an optimal entry point to short.
Live market analysis, the hourly chart
As illustrated, the price has stalled on the upside, following a slight extension mind you, but that only gives more earnings potential from a trading perspective.
The thesis still remains that the price will revisit the prior structure of the W-formation which now coincides with a 50% mean reversion instead of only a 38.2% Fibonacci retracement.
However, conditions are not quite ripe for an entry and the bears have some work to do in testing the bull's commitments at support.
A break and restest of the structure with MACD below zero and the price below the 21-SMA will offer the favourable conditions for shorting the market.
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