NZDCHF Top-Down Analysis

FX:NZDCHF   New Zealand Dollar/Swiss Franc
Hello Traders,

Here is the Top-Down Analysis of NZDCHF (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 44 - 26 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.

D > After creating double top at daily resistance level price is dropping in a downward channel . Price has completed W formation as expected and it dropped last week to test weekly demand zone , faced rejection and moved upward till resistance of channel. We expect price to drop to test weekly demand zone again.

As per COT NZD saw closure of both Long and Short positions further improving net positions, whereas ZXY was weak during the said week but it gained strength last week. ZXY has been gaining strength slowly since June 2020. CHF saw addition of more Long than Short positions, improving net positions whereas Commercials also added few Long and more Short positions increasing net open positions. However SXY was weak during the said week but it gained strength last week.

4H > Price has faced rejection at resistance of channel and is currently testing 4H supply zone . We expect price move to the downside.

Pair Correlation > NZDCHF has positive correlation with 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