Daily Forex Update: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to rise inside the well-formed Up Channel chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the Quality of this Up Channel at the 8-bar level – which reflects the sharp Initial Trend (10 bars), average Uniformity (5 bars) and significant Clarity (8 bars). AUD/NZD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance zone shown below.  

As can be seen from the daily AUD/NZD chart below, the price earlier broke through the resistance zone lying between the key resistance level 1.0540 (former monthly high from June) and the 50% Fibonacci correction of the downward price impulse from May. This price zone is acting as support area after it was broken. The proximity of this support area adds to the probability AUD/NZD will continue to rise inside this Up Channel.

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