NZDCHF Technical Anlaysis
NZDCHF Technical Anlaysis for January 10 to January 14 2022.
1D NZDCHF key takeways:
- A strong downtrend which failed
- Uptrend loss momentum and the bears to control over the market causing the price to push back to the down inside and back into the previous price channel which it had broken out of.
- In the past, price showed the upper trend line of the price channel respect many times as they touched.
4H NZDCHF key takeways:
- As previously mentioned, price respected the upper trendline of the price channel very much. This goes to show that it is a strong resistance.
- Upper trendline and horizontal support form a descending triangle, which could mean a continuation of the downtrend.
- Though price broke above the upper trendline, it then lose its momentum shortly after, which means it could be a possible false breakout.
1H NZDCHF key takeways:
- Notice the extensive push that was made prior to breaking the upper trendline.
- However, it is possible that price would fail to do a fitting retracement, which would cause it to break back below the upper trendline which is now acting as a support.
- In the case that price does break below the upper trendline, then short positions are what I would only be looking for.
Due to the immense drop on the daily timeframe, it is possible that price might enter a consolidating state (ie: moving sideway) since the drop could be seen as evidence of the absence of bulls, and/ or the lack of power to regain the market in their favor.
As bears take their profit, the market would ccontinue to move sideway until either the bears or bulls retake control, pushing price in their favorable direction.