NZD/CHF 1H Chart: Channel Up
NZD/CHF 1H Chart: Channel Up
- The New Zealand Dollar is trading against the Swiss Franc in a two day long ascending channel.
- Formation of the pattern represents a rebound of the currency exchange rate from the bottom trend-line of a preceding descending channel.
- By the moment, the channel consists of four confirmation points, which means that it has already reached maturity.
- Basically, the pattern might cease to exist already by the end of the day.
- Its vertical and narrow structure makes it very sensitive to various barriers, such as the 200-hour SMA near 0.7115.
- On an upcoming turn around also point out a number of technical indicators, suggesting the pair is overbought.
- However, if the rate manages to bypass this resistance level, it will face no other obstacles, including fundamental data releases, up until the monthly PP at 0.7172.
Trade geschlossen: Ziel wurde erreicht:
NZD/USD rebounds from 0.7258
In line with expectations, Kiwi continued to lose value against the American Dollar until the pair has reached a support at the 0.7258 level. Since the area below consisted of many loss trades and take profit orders, the currency rate made a successful rebound and started to surge towards the weekly PP at 0.7331.
At the moment, the pair is moving horizontally, being squeezed between the above support level from the bottom and a combination of the 55- and 100-hour SMAs and the monthly S1 from the top. The bearish market sentiment has increased by 1% since yesterday and now amounts to 68%. In addition, a summary of various technical indicators for the upcoming day also send strong sell signals.
This information might mean the pair is still fluctuating in a descending channel, while the little bugle on August 10 simply represents a correction after an announcement of the Official Cash Rate.
In line with expectations, Kiwi continued to lose value against the American Dollar until the pair has reached a support at the 0.7258 level. Since the area below consisted of many loss trades and take profit orders, the currency rate made a successful rebound and started to surge towards the weekly PP at 0.7331.
At the moment, the pair is moving horizontally, being squeezed between the above support level from the bottom and a combination of the 55- and 100-hour SMAs and the monthly S1 from the top. The bearish market sentiment has increased by 1% since yesterday and now amounts to 68%. In addition, a summary of various technical indicators for the upcoming day also send strong sell signals.
This information might mean the pair is still fluctuating in a descending channel, while the little bugle on August 10 simply represents a correction after an announcement of the Official Cash Rate.
