NZDCHF SELL?

Oct 30

1. Overview
The market has been trading within a prolonged bearish structure, maintaining consistent lower highs and lower lows. Recent price action indicates a temporary corrective phase, suggesting a possible short-term retracement within the broader downtrend.

2. Technical Analysis
Daily Timeframe:
Price has retraced toward the 0.618 Fibonacci level, which is acting as a significant resistance area. This aligns with the potential completion of a short-term corrective wave, signaling a possible resumption of bearish momentum if the level holds.

4-Hour Timeframe:
The 4-hour chart shows signs of a potential reversal pattern forming near the current resistance zone. This pattern may indicate exhaustion of the retracement and an early sign of sellers regaining control.

3. Outlook
Should the current resistance area remain intact, renewed selling pressure is expected, potentially leading to a continuation of the broader downtrend. However, a confirmed breakout above the 0.618 Fibonacci resistance could invalidate the bearish setup and signal a deeper corrective phase.


Disclaimer:
Please be advised that the information presented on TradingView is solely intended for educational and informational purposes only.The analysis provided is based on my own view of the market. Please be reminded that you are solely responsible for the trading decisions on your account.

High-Risk Warning
Trading in foreign exchange on margin entails high risk and is not suitable for all investors. Past performance does not guarantee future results. In this case, the high degree of leverage can act both against you and in your favor

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