Can NZD/CHF sustain its bullish reversal?
I’m counting on Kiwi bulls to charge around these pullback levels on the 4-hour chart!
Check out this break-and-retest setup on NZD/CHF’s 4-hour chart!
The pair broke above the neckline of a small double bottom sometime last month, and it looks like a correction to this former resistance is taking place.The handy-dandy Fib tool shows that this lines up with the 61.8% retracement level, which adds to its strength as a potential floor.
If it holds, we might just see NZD/CHF zooming back up to the swing high at the .5900 handle and beyond.
Stochastic has already made its way out of the oversold region, indicating that bullish vibes are returning. Also, the 100 SMA is safely above the 200 SMA to confirm that support levels are more likely to hold than to break.
The 200 SMA dynamic inflection point even lines up with the area of interest around the .5700 major psychological mark.
There’s not much in the way of top-tier data points from both New Zealand and Switzerland, though, so I’d look out for any swings in market sentiment when trading this one.
Don’t forget to account for the average NZD/CHF volatility, too!
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