By: Dima Chernovolov
AUD/NZD continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (8 bars) and significant Clarity (7 bars). AUD/NZD is expected to fall further inside this Down Channel – in line with the earlier breakout of the key support level shown below.
As can be seen from the daily AUD/NZD chart below, the price earlier broke below the key support level 1.0450 (former support from August), standing close to the 61.8% Fibonacci correction of the previous upward impulse from August. This price area is acting as resistance zone after it was broken. The proximity of this resistance area and the strength of the active daily impulse wave increase the probability AUD/NZD will continue to fall inside this Down Channel.