This forex pair is stuck in consolidation and currently testing its triangle bottom.

Will we see one other bounce soon?

Try these levels and indicators I’m watching on the 4-hour timeframe.

NZD/CHF 4-hour Forex Chart by TradingView

Each the Kiwi and Swiss franc have been on weaker footing currently, because the Latest Zealand economy is facing a grim outlook for growth while the Swiss National Bank (SNB) recently announced a surprise rate cut.

Due to that, NZD/CHF has been moving sideways, forming higher lows and lower highs to consolidate inside a symmetrical triangle pattern.

Can it break out soon? And which way might it go?

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. Should you haven’t yet done your fundie homework on the Kiwi and Swiss franc, then it’s time to examine out the economic calendar and stay updated on each day fundamental news!

Stochastic is already dipping into the oversold region to signal exhaustion amongst sellers, so turning higher might mean that buyers are able to get back in motion and spur a bounce back to the triangle top.

As well as, the oscillator is forming lower lows while the pair had higher lows, creating a possible bullish divergence!

If support holds, be careful for a move back as much as the resistance near R1 (.5440) and the .5450 minor psychological mark. A break below the triangle bottom, then again, could trigger a selloff that’s the identical height because the chart pattern.

NZD/CHF is trading below each moving averages, too, so these might keep holding as dynamic resistance levels. If sellers stay on top of things, look out for a drop to the subsequent downside goal at S1 (.5340) or lower.

Good luck and good trading this one!