Daily Forex Update: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to fall inside the 4-hour Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (one bar), strong Uniformity (8 bars) and above average Clarity (6 bars). NZD/CAD is expected to fall further inside this Down Channel – in line with the earlier breakout of the key support level below.

As can be seen from the daily NZD/CAD chart below, the price earlier broke the pivotal support level 0.8860 (which also reversed the price multiple times at the start of January). This price level is acting as resistance after it was broken. The proximity of this resistance level and the strength of the active downward impulse wave increase the probability NZD/CAD will continue to fall inside this Down Channel.

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