Hello Traders,
Here is the Top-Down Analysis of NZDCHF (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Market is moving in a downward channel with few breakouts. Price moved up to test previous support now turned monthly resistance and faced rejection.
W > We can notice that price is facing rejection from supply zones that turn into resistance. Price moved up to face rejection in 1st week of June and supply zone created in last week of June that turned into resistance for price in August and September. Price is now at supply zone.
D > Price created a double top at resistance level and dropped creating LH and LL. We saw a W formation and price dropped till neck to complete the formation and moved up to create next LH at previous demand zone. Price is now dropping down.
As per COT NZD had closure of few Long and major Short increasing net positions, confirming strength of ZXY for the said week. Short positions have reduced to least in current year. ZXY has been gaining strength slowly since June 2020. ZXY improved its position last week. CHF saw closure of both Long and Short positions with Short position reducing to least for current year, increasing net positions marginally. SXY was strong for the said week. SXY further gained strength last week.
4H > Price is respecting support provided by downward trend-line. While testing the neck of W formation price dropped further till the trend-line and moved up. We can see H & S created by the price while moving upwards, price further moved up to creating a LH. We expect price to drop till support trend-line and its behaviour there will provide further target.
Pair Correlation > NZDCHF has positive correlation with AUDCHF, CADJPY, NZDJPY, NZDCAD and NZDUSD and negative correlation with EURNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of NZDCHF (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 42 - 12 Oct
M > Market is moving in a downward channel with few breakouts. Price moved up to test previous support now turned monthly resistance and faced rejection.
W > We can notice that price is facing rejection from supply zones that turn into resistance. Price moved up to face rejection in 1st week of June and supply zone created in last week of June that turned into resistance for price in August and September. Price is now at supply zone.
D > Price created a double top at resistance level and dropped creating LH and LL. We saw a W formation and price dropped till neck to complete the formation and moved up to create next LH at previous demand zone. Price is now dropping down.
As per COT NZD had closure of few Long and major Short increasing net positions, confirming strength of ZXY for the said week. Short positions have reduced to least in current year. ZXY has been gaining strength slowly since June 2020. ZXY improved its position last week. CHF saw closure of both Long and Short positions with Short position reducing to least for current year, increasing net positions marginally. SXY was strong for the said week. SXY further gained strength last week.
4H > Price is respecting support provided by downward trend-line. While testing the neck of W formation price dropped further till the trend-line and moved up. We can see H & S created by the price while moving upwards, price further moved up to creating a LH. We expect price to drop till support trend-line and its behaviour there will provide further target.
Pair Correlation > NZDCHF has positive correlation with AUDCHF, CADJPY, NZDJPY, NZDCAD and NZDUSD and negative correlation with EURNZD.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX