Daily Forex Update: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to fall sharply inside the daily Down Channel chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist measures the quality of this Down Channel at the 6-bar level – which reflects the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). NZD/CAD is expected to fall further inside this chart pattern – in line with the sharp weekly downward impulse from June.

As can be seen from the weekly NZD/CAD chart below, the price earlier broke the key support zone lying between the strong support level 0.9100 (former monthly low from July of 2016) and the 61.8% Fibonacci correction of the sharp weekly price impulse from April of 2016. This price zone is acting as resistance area after it was broken. The proximity of this resistance zone increases the probability NZD/CAD will continue to fall inside this Down Channel.

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