Daily Forex Update: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to fall inside the clear 30-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and strong Clarity (10 bars). AUD/NZD is expected to fall further inside this chart pattern – 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 with the daily Shooting Star from the resistance zone lying between the key resistance level 1.0950 (monthly top of May), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from October of 2017.  This proximity of this resistance zone and the overbought daily Stochastic increases the probability AUD/NZD will continue to fall inside this chart pattern.

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