Daily Forex Update: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to fall inside the Falling Wedge chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the Quality of this Falling Wedge at the 4 bar level – which is the result of the low Initial Trend (2 bars), above-average Uniformity (6 bars) and medium Clarity (5 bars). NZD/CAD is expected to continue to fall toward the lower support trendline of this Falling Wedge – in line with the technical analysis show on the second chart below.

As can be seen from the daily NZD/CAD chart below, second connecting pivot of the upper resistance trendline of this Falling Wedge formed when the pair reversed down from the resistance zone located between the resistance level 0.9440, upper daily Bollinger Band and the 50% Fibonacci retracement of the downward impulse (i) from the start of March. The downward reversal from this resistance zone continues the sharp downward impulse from the top of this Falling Wedge. The proximity of this resistance zone adds to the likelihood NZD/CAD will continue to fall inside this Falling Wedge.

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