By: Dima Chernovolov
EUR/NZD continues to fall inside the clear Falling Wedge chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (one bar), average Uniformity (5 bars) and significant Clarity (7 bars). EUR/NZD is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the resistance zone shown below.
As can be seen from the daily EUR/NZD chart below, the price earlier reversed down from the resistance zone lying between the key resistance level 1.7080 (upper boundary of the sideways price range inside which the pair has been trading from December), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from November. The proximity of this resistance zone increase the probability EUR/NZD will continue to fall inside this chart pattern.
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