Trade of the Day: NZD/CHF

By: Dima Chernovolov

NZD/CHF continues to rise in the direction of the 4-hour Key Resistance Level 0.6827 which was recently identified by Autochartist. Autochartist rates the quality of daily this Resistance Level at the 4-bar level – which is the result of the 4 previous reversals from this price level. NZD/CHF is expected to rise further toward this Resistance Level– in line with the earlier upward reversal from the key support area shown below.

As can be seen from the daily NZD/CHF below, the price earlier reversed up from the support area lying between the strong support level 0.6720 (which has been reversing the price from January) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily Stochastic indicator increase the probability NZD/CHF will continue to rise toward the Key Resistance Level 0.6827.