Trade of the Day: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to fall inside the 15-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars), and strong Clarity (9 bars). AUD/NZD is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily AUD/NZD chart below – the pair recently reversed down from the strong resistance area located between the pivotal resistance level 1.0320 (former strong support from January) and the 61.8% Fibonacci retracement of the previous sharp downward impulse from the start of March. The proximity of this resistance zone adds to the probability AUD/NZD will continue to fall inside this chart pattern.