Daily Forex Update: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to fall inside the daily Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (2 bars) and average Uniformity and Clarity (both rated at the 5 bar level). AUD/NZD is expected to fall further inside this Falling Wedge – in line with the earlier breakout of the support zone shown below.

As can be seen from the daily AUD/NZD chart below, the price earlier broke through the support zone lying between the powerful support level 1.0860 (which has been reversing the price from last September) and the 61.8% Fibonacci correction of the upward price impulse from July.  This price zone is acting as resistance area after it was broken. The proximity of this resistance area increases the probability AUD/NZD will continue to fall inside this Falling Wedge.

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