The NZDCHF has been going bullish since 1st January
2014 on the monthly chart, but that strong bullish trend that has been for two
months now looks to be fading away.
Lets take a look at the monthly chart and analyse it
technically to see what it says.
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| Forex NZDCHF Monthly Chart |
On the monthly chart as shown above, the bulls pushed the price up only to meet a stiff resistance on 0.77297 level (the resistance level is shown on the chart above as A) which is the highest level they have reached since 1st November 2013. 0.77297 acted as a very strong resistance but the bulls where only able to Pierce through that resistance level 0.77297 but they closed below the level at the close of the monthly candle stick as shown on the monthly forex chart as B.
The candle stick B trying to close above the highest price level of candle stick A but ending up closing below candle stick A level is the first signal there will be a trend reversal. Now lets take a look at the weekly chart to see if it will confirm what the monthly chart is saying.
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| forex NZDCHF weekly chart |
On the weekly chart, the first thing you will notice is candle stick B trying to piece through the bollinger band upper band and successfully closing above the bollinger band upper band. That alone is a very strong indicator of a trend reversal. you will also see that Candle stick B tested and pieced through candle stick A's highest price. And the inability of candle stick B closing above candle stick B's highest price is the confirmation of a trend reversal as suggested on the monthly chart. Lets technically analysis the daily chart to see how to take our positions.
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| NZD/CHF daily chart |
Even the daily chart has shown a very strong trend reversal signals. On the daily chart above, you will see that candle stick A,B,C and E all pieced and closed above the bollinger band upper band while candle stick E pieced but closed below the bollinger band upper band as a hanging man. that is the first signal of a trend reversal but the second signal is even more powerful. On the daily chart above, you will see that the bulls retested and tried to bush the price further up above the highest closing price price they have reached since march 30, 2014 but ended up closing below that level as shown on the daily chart above as E,F,G and H.
To take position, once the trend line above has been broken, as shown above, we enter short. Take profit should plased at 0.73431
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