Daily Forex Update: NZD/USD

By: Dima Chernovolov

NZD/USD continues to rise inside the high-quality Down Channel chart pattern which was previously identified by Autochartist on the daily charts. Autochartist measures the quality of this Down Channel at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), above-average Uniformity (6 bars) and significant Clarity (9 bars). NZD/USD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the major support area shown below.

As can be seen from the daily NZD/USD chart below, the bottom of this Down Channel formed when the pair revered up from the support area lying between the multi-month support level 0.6830 (which also reversed the price sharply in the middle of May) and the lower daily Bollinger Band. The proximity of this support zone increases the probability NZD/USD will continue to rise inside this Down Channel.

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