Daily Forex Update: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to fall inisde the clear Down Channel which was previously identified by Autochartist on the 30-minute charts. Autochartist measures the Quality of this Descending Triangle at the 7-bar level – which is the result of the slow Initial Trend (4 bars), above-average Uniformity (7 bars) and near-maximum Clarity (9 bars). NZD/CAD  is expected to fall further inside this Down Channel  – in line with the active daily impulse wave which broke the support area shown below.

As can be seen from the daily NZD/CAD chart below, this Down Channel follows the earlier breakout of the support area lying between the support level 0.9530 (previous monthly low from June) and the 38.2% Fibonacci correction of the upward impulse from April.  The breakout of this support zone strengthened the bearish pressure on this currency pair. The strength of the active downward impulse wave increases the probability NZD/CAD will continue to fall inside this Down Channel.

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