News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here:
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here:
  • Take a closer look visually at the most influential global importers and exporters here:
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here:
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here:
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
NZD/CHF Set-up That's Common Yet Controversial

NZD/CHF Set-up That's Common Yet Controversial

Kaye Lee, Head Forex Trading Instructor

Talking Points:

  • Broken Trend Line Retest in NZD/CHF
  • Key Resistance Zone for Selling the Pair
  • Mixed Elliott Wave Signals to Consider First

Kaye Lee is enjoying holiday for the week ahead and new articles may appear less frequently during this time. The normal publication schedule will resume shortly after April 10.

US non-farm payroll (NFP) Fridays always tend to be days when many traders are afraid to take trades, but since this article is being written after the NFP announcement, that should not present so much of a problem. Currently, the daily chart of NZDCHF is showing an interesting formation, which may signify the end of a short recent trend.

Although this is one of the more common trades in trend line analysis, it is also a pattern that has been relatively rare in recent memory. Hopefully, this signals a shift away from the touch-and-go environment and sideways equity curve we’ve seen over the past two weeks. Although that comes with the territory, no trader would deny that it is among the most boring and sometimes most frustrating parts of trading.

On the below chart, should a retest of the broken trend line materialize, the fall could contain nearly 200 pips of downside just to reach the next rising line of support.

Guest Commentary: Daily Trend Line Retest in NZD/CHF

The potential retest of a broken trend line on the daily chart of NZD/CHF gives rise to possible short set-ups on the lower time frames.

The four-hour chart below shows a handy resistance area derived from a previous consolidation. This resistance area is 0.7656-0.7695, a 39-pip zone that is somewhat small for a four-hour chart, but considering the possible for 200 pips to the downside, the overall risk profile is certainly inviting.

Guest Commentary: Key Zone for Selling NZD/CHF

A previous consolidation zone on the 4-hour chart of NZD/CHF helps define a key resistance area for initiating new short positions in the pair.

The best way to enter this trade would be on the hourly chart (see below) using bearish reversal divergence, pin bars, or bearish engulfing candlestick patterns as viable triggers. As we’ll see, however, Elliott wave purists may raise some questions about the validity of this set-up.

Guest Commentary: Mixed Elliott Wave Signals in NZD/CHF

Mixed Elliott wave signals on the hourly chart of NZD/CHF seem to confirm but also call into question the validity of this potential short set-up.

Although countertrend trading is usually considered more dangerous, the daily chart has clearly broken a line of support, and thus, hypothesising a change in the trend to at least a sideways consolidation on the daily chart is perfectly reasonable. Regardless, though, two or three attempts may still be required to get in on this trade.

As marked on the hourly chart, there has been a five-wave decline, which lends greater credibility to the idea that a downtrend may have begun. The current retracement could well be an A-B-C formation, although Elliott purists would raise multiple objections, particularly with regard to the bullish momentum evidenced in the ‘a’ wave. This should not come as a surprise, however, as NZDCHF was originally in an uptrend.

Regardless of theory, common sense would suggest that there should be a surplus of bullish momentum to be washed out, and as such, an oversized retracement within the downtrend is perfectly acceptable.

By Kaye Lee, private fund trader and head trader consultant,

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.