The NZD/CHF pair has been in a downtrend since the beginning of the year, but a wave analysis suggests that a bullish reversal may be imminent. The pair has reached a Fibonacci retracement level of 61.8%, which is a common level for reversals to occur. Additionally, the pair has formed a bullish flag pattern, which is a bullish continuation pattern.
The Fibonacci retracement level of 61.8% is calculated by dividing the distance between the highest and lowest points of a trend by 0.618. In the case of the NZD/CHF pair, the highest point was 0.6763 and the lowest point was 0.6000. The 61.8% retracement level is 0.6375.
The bullish flag pattern is a continuation pattern that forms after a sharp move in the direction of the trend. The pattern consists of a flagpole, which is the sharp move in the direction of the trend, and a flag, which is a period of consolidation. The flagpole and the flag are typically the same length.
In the case of the NZD/CHF pair, the flagpole is the downtrend that began in January 2023. The flag is the period of consolidation that has been taking place since March 2023. The flag is the same length as the flagpole, which is a bullish sign.
The combination of the Fibonacci retracement level of 61.8% and the bullish flag pattern suggests that a bullish reversal may be imminent. If the pair breaks above the resistance level of 0.6375, it could target the next resistance level of 0.6500.
The NZD/CHF pair is a popular currency pair that is traded by forex traders around the world. The pair is made up of the New Zealand dollar and the Swiss franc. The New Zealand dollar is a commodity currency, which means that its value is often influenced by the price of commodities such as oil and gold. The Swiss franc is a safe haven currency, which means that its value often increases during times of economic uncertainty.
The NZD/CHF pair has been in a downtrend since the beginning of the year, but the wave analysis suggests that a bullish reversal may be imminent. The pair has reached a Fibonacci retracement level of 61.8%, which is a common level for reversals to occur. Additionally, the pair has formed a bullish flag pattern, which is a bullish continuation pattern.
If the NZD/CHF pair breaks above the resistance level of 0.6375, it could target the next resistance level of 0.6500. However, if the pair breaks below the support level of 0.6250, it could resume the downtrend.
The NZD/CHF pair is a volatile pair, so it is important to use risk management when trading it. Traders should use stop losses to protect their profits and losses.
