Technical update for NZDCHF: False breakout, stop and reverse

With a false breakout above 23.6% Fibonacci, the NZDCHF pair ended the trading of May 25 and that has made a failure to the previous proposed long position.

After that, prices have collapsed below the previous placed short-term low at 0.6773 as seen on the provided eight-hour chart, encouraging us to use stop and reverse strategy.

nzdchf-28-05-update-fxcomment

Shorts are preferable with Vortex turning into negativity and a breakout below momentum indicator (Kairi indicator).

Measuring the distance between short-term support and resistance of sideways range suggests potential visit of 0.6645 boundaries.

On the upside, stability below 0.6850 is required to keep this outlook valid.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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