Watching and waiting .. will NZDCHF drop? 26 Jan 2021

Price has arrived at the 0.6420 region again and as you can see this is an area of interest, especially for swing traders. NZD has been strong and CHF rather weak recently but as we all know that can change any time. Both options are possible, a break above or a reversal.
As per my weekly chart I would say the long-term bias should be bearish and this region may be a reversal point once again.

Price action on the H4 chart is supportive of my bias, but we need to see some real signs of reversal before we commit to a trade. I will be monitoring PA on H8/H12 for any signs that a short trade is viable. Obviously a strong break above the zone will negate my analysis and I would look for a pullback entry to go long.
We could have a nice Multiple R trade either way.

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As always, please use sound money and risk management in all your trades.

Kommentera:

No trade yet, we are still in the resistance zone.