By: Dima Chernovolov
NZD/USD continues to fall inside the clear hourly Down Channel which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend (2 bars), low Uniformity (one bar) and strong Clarity (10 bars). NZD/USD is expected to fall further inside this Down Channel – in line with the earlier breakout of the powerful support level shown below.
As can be seen from the daily NZD/USD chart below, the price earlier broke through the major support level 0.6790 (which stopped the previous share downtrend in last November). This price level is acting as resistance after it was broken. The proximity of this resistance level and the strength of the active daily impulse wave increase the probability NZD/USD will continue to fall inside this Down Channel.
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