Daily Forex Update: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to rise inside the clear Down Channel chart pattern, which was previously identified by Autochartist on the daily charts. Autochartist rates the Quality of this Down Channel at the 7 bar level – which is the result of the sharp Initial Trend (10 bars), lower Uniformity (3 bars), and significant Clarity (7 bars). The maximum Initial Trend reflects the strength of the previous daily impulse from January. AUD/NZD is expected to rise further inside this Down Channel – continuing the earlier upward reversal from the support zone described below

As can be seen from the daily AUD/NZD chart below, the bottom of this Down Channel formed near the support zone lying between the support level 1.0630 (which has been reversing the price from March), lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse from January. The proximity of this support area increases the probability AUD/NZD will continue to rise inside this Down Channel.

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