Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to rise inside the daily Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 6-bar level – which reflects the slow Initial Trend (2 bars), substantial Uniformity (9 bars) and strong Clarity (8 bars).  NZD/CAD is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the key multi-month resistance level shown below.

As can be seen from the NZD/CAD chart below – the pair recently broke the powerful, multi-month resistance 0.8800 (which has been reversing the price from the end of last year). This price level is acting as the strong support after it was broken. The proximity of this support level, rising daily Momentum and the strength of the active medium-term uptrend heighten the probability NZD/CAD will continue to rise inside this Rising Wedge.