NZD/CHF Daily Price Forecast – 21st May 2025

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Trade Summary:

EURGBP
Sell Stop @ 0.83971
TP @ 0.83650
SL @ 0.84339

 

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NZD/CHF Technical Analysis

The chart provided is a 4-hour (H4) timeframe for the NZD/CHF currency pair. Below is a detailed analysis based on the chart:

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Key Observations:

• Trend Analysis:

  • The pair appears to be in a downtrend as indicated by the lower highs and lower lows.

  • The price is trading below both the 50-period moving average (yellow line) and the 200-period moving average (red line), which confirms bearish momentum.

• Support and Resistance Levels:

  • Resistance Level: The price has faced resistance near 0.49274, which is marked as the stop-loss (SL) level.

  • Support Level: The price is approaching a support zone near 0.48523, which is marked as the take-profit (TP) level.

• Sell Stop Order:

  • A Sell Stop order is placed at 0.48851, indicating that the trader expects further bearish movement if the price breaks below this level.

• Moving Averages:

  • The 50-period moving average is below the 200-period moving average, forming a death cross, which is a strong bearish signal.

  • The price is currently below both moving averages, reinforcing the bearish sentiment.

• Candlestick Patterns:

  • Recent candlesticks show bearish momentum with strong red candles, suggesting selling pressure.

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Trade Setup:

• Entry Point: Sell Stop at 0.48851.

• Stop Loss (SL): 0.49274 (above the recent resistance level).

• Take Profit (TP): 0.48523 (near the next support level).

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Risk-Reward Ratio:

• The distance between the entry point and the stop loss is approximately 42.3 pips.

• The distance between the entry point and the take profit is approximately 32.8 pips.

• The risk-reward ratio is slightly below 1:1, which may require careful consideration depending on the trader's risk appetite.

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Indicators and Signals:

• Bearish Momentum:

  • The price is consistently making lower highs and lower lows.

  • The moving averages and candlestick patterns confirm the bearish trend.

• Breakout Potential:

  • A break below 0.48851 could trigger further downside movement toward the take-profit level.

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Conclusion:

The NZD/CHF pair is showing strong bearish momentum on the H4 chart. The trade setup suggests a continuation of the downtrend if the price breaks below the Sell Stop level at 0.48851. However, traders should monitor the risk-reward ratio and adjust their position size accordingly. Additionally, external factors such as economic data or geopolitical events could influence the pair's movement, so staying updated on fundamental news is crucial.

Recommended Lot Size

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It's widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it's easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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