NZDCHF breakout?

Good Morning Dynamic Traders

I hope you're all enjoying successful, consistent trades this week.

Let's take a look at the NZDCHF. I want to start by looking at the weekly chart so we can get a broader view on this pair. We can see that the previous major trend is down and the current up move we're seeing may simply be a big breather. Note that price is beneath the VI suggesting we're still in a bearish trend. Price is climbing towards a critical point, where we have a cluster of resistances awaiting. At the same time MACD is diverging, suggesting we may have a change in price direction in the near future. Will we see price resuming to the larger trend or will we see price continue to rally and breakthrough?
















Now looking at the daily chart, we can see the current uptrend clearer. Price has been steadily going up since earlier this year. Price broke above the VI and as of yesterday broke through a 2 month long consolidation. However, caution should be taken as the BOB was an indecision candle suggesting a struggle between the bulls and the bears! We are also at a RN. We may still see some indecision on price, so using ESLT on BOB should protect against FBO's.
















This pair is a great example of keeping an eye on big brother. By looking at only the daily chart we would have missed all the other information we gathered from the weekly. So it's always important to look at the bigger picture, as quite often it will furnish you with further confluences, allowing you to make a more informed judgement on your trades.

Here's to great trading!

Sonia Molina