Daily Forex Update: NZD/CAD
By: Dima Chernovolov
NZD/CAD recently reversed down sharply from the top of the Up Channel chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the Quality of this chart pattern at the 6 bar level – which is the result of the below-average Initial Trend (4 bars), higher Uniformity (6 bars) and significant Clarity (8 bars). AUD/USD is expected to fall toward the lower support trendline of this Up Channel.
As can be seen from the weekly NZD/CAD chart below, the top of this Up Channel formed when the pair reversed down from the resistance zone lying between the upper weekly Bollinger Band and the strong resistance level 0.9730 (which also reversed the price in September). Given the clear triple bearish divergence on the weekly Stochastic indicator – NZD/CAD can be expected to continue to fall inside this Up Channel.
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