NZDCHF with a great bearish price action
22 November 2022
It is a fairly quiet day on the market at the moment with almost an empty calendar and major indices and currency pairs going pretty much sideways. We have to look for trading occasions elsewhere, but we have found a very promising setup on the NZDCHF. The fact that this is an exotic instrument does not make this setup worse or of bad quality - quite the opposite, price action here is very promising!
NZDCHF is in a very clear down trend and most recently, the price tested and respected the major down trendline (blue), which means that the bearish sentiment is on. What is more, the price bounced of the 38,2% Fibonacci along with the 0.59 resistance (orange), which was a crucial support in the summer.
Currently, the price is drawing a shooting star candle, which may be an additional factor here. If the bounce of the resistance alone is not enough for you, maybe you would like to wait for the breakout of the support. In this case, we have an important one for you – green, mid-term up trendline. Price closing a day below that one should be a definite goodbye for the buyers and a proper sell signal.