By: Dima Chernovolov
AUD/NZD continues to fall inside the daily Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which is the result of the slow Initial Trend (one bar), strong Uniformity (8 bars) and above-average Clarity (6 bars). AUD/NZD is expected to fall further inside this Triangle – in line with the earlier downward reversal from the resistance zone shown below.
As can be seen from the daily AUD/NZD chart below, the price earlier reversed down from the resistance zone lying between the strong resistance level 1.1050 (which also reversed the price at the start of January), upper daily Bollinger Band and the 50% Fibonacci correction of the downward impulse from October. The proximity of this resistance area increases the probability AUD/NZD will continue to fall inside this Triangle.
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