The NZDCHF cross 4-hour chart shows a first bullish movement which looks like a first motive move. The retrace developed by the cross makes us suspect that a second motive impulse could start soon.
The potential Inverted H&S pattern
The structure suggests a call for an Inverted Head and Shoulder pattern. The breakout and close above 0.6596 level will activate the chartist pattern. The profit target is at 0.67260, and the invalidation level is at 0.6525.
According to T. Bulkowsky in his book “Encyclopedia of Chart Patterns”, in a bear market, this pattern tends to meet the target 58% of the time.
- Bullkowsky, T. (2005). Encyclopedia of Chart Patterns. 2nd Edition. John Wiley & Sons, Inc. New Jersey.