Daily Forex Update: NZD/USD
By: Dima Chernovolov
NZD/USD continues to fall after the recent breakout of the clear Up Channel chart pattern which was previously identified by Autochartist on the hourly charts. Autochartist measures the Quality of this Up Channel at the 7 bar level – which reflects the average Initial Trend (5 bars), higher Uniformity (6 bars) and near-maximum Clarity (9 bars). Autochartist similarly measures the strength of this breakout at the 9-bar level. NZD/USD is expected to fall to the Forecast Price 0.7070.
As you can see from the daily NZD/USD chart below – the top of this Up Channel formed when the pair reversed down from the resistance zone lying between the key resistance level 0.7200 (which reversed the price sharply in December), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from November. The proximity of this resistance zone heightens the likelihood the pair will continue to fall toward the Forecast Price 0.7070 tomorrow.
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