Daily Forex Update: AUD/NZD
By: Dima Chernovolov
AUD/NZD continues to fall inside the clear Falling Wedge chart pattern was previously identified by Autochartist on the 30-minute charts. Autochartist rates the Quality of this Falling Wedge at the 4 bar level – which is the result of the slow Initial Trend (4 bars), lower Uniformity (one bar) and significant Clarity (7 bars). AUD/NZD is expected to fall further inside this Falling Wedge continuing the earlier breakout of the support zone described below.
As can be seen from the daily AUD/NZD chart below, the price earlier broke the support zone lying between the pivotal support level 1.0630 (which has been reversing the price from February), lower trendline of the daily Down Channel from the middle of March and the 61.8% Fibonacci correction of the upward impulse form January. This price area is acting as resistance zone after it was broken. The proximity of this resistance zone increases the probability AUD/NZD will continue to decline inside this Falling Wedge.
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