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NZDCHF Harmonic Analysis: March 20-24, 2017
NZDCHF Harmonic Analysis: March 20-24, 2017

The NZDCHF has endured a 4-week sell-off. However, price has halted just above a cluster of key support levels. Price has also completed a bullish harmonic pattern. Let’s look at NZDCHF Harmonic Analysis for the week ahead to see why a possible rally in imminent.

18 March, AtoZForex  The coming week will see light fundamentals on the CHF. For the NZD, however we have the official rate and RBNZ statement coming up on Wednesday, March 22. Technically speaking however, it appears that the bulls will take charge soon as a rally is imminent

NZDCHF Harmonic Analysis

NZDCHF Daily Chart (click to zoom)

The Daily chart shows a completed bullish butterfly pattern. The pattern was formed as price surged from the key support at 0.6994 on December 30th ‘X’ and surged 300 pips to 0.7300 on February 2 ‘A’. Thereafter, price made a 50% correction of the rally and dropped to 0.7158 (February 9 low) to form point ‘B’. Point ‘C’ was formed on February 23 as price hit 0.87% of XA rally at 0.7297. Finally point ‘D’ formed at 0.6850 psychological support level which stands as the PRZ (potential reversal zone).

NZDCHF Harmonic Analysis

NZDCHF H4 Chart (click to zoom)

The 4 hour chart equally shows a completed bullish shark harmonic pattern. The pattern was formed as the XA leg begun on February 9 and completed at 0.7268 on February 16. The AB leg completed on February 16 as price dipped 0.86% of the AB rally. Point BC begun on February 17 at 0.7172 and rallied 1.27% extension of point AB to a high of 0.7297. Point ‘D’ completed as price hit the PRZ at 0.6850, which is 2.618 Fibonacci extension of point BC.

NZDCHF Harmonic Analysis

NZDCHF 30M Chart (click to zoom)

The 30 minute chart however tells a different story. Price has completed a bearish bat pattern at the 0.6900 psychological resistance level. This means that a retest of Friday’s low at 0.6844 is possible before the rally begins.

NZDCHF Harmonic Analysis: Possible entry and exit levels

The 0.6850 level should provide a good buy opportunity. With a stop a 0.6780 and a target of 0.7100. This is a 3:1 reward to risk trade setup with a good technical basis.

Think we missed something? Let us know your view on NZDCHF harmonic analysis in the comments section below.


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