Trade of the Day: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to rise inside the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 3-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bar), and lower Clarity (3 bars). AUD/NZD is expected to rise further inside this chart pattern – in line with the earlier breakout of the resistance area highlighted below.

As can be seen from the daily AUD/NZD chart below – the pair earlier broke the resistance area lying between the key resistance level 1.0320 (former Double Bottom from January) and the 61.8% Fibonacci retracement of the pervious downward impulse from the start of March. This price area is acting as the support zone after it was broken. The proximity of this support zone increases the probability AUD/NZD will continue to rise inside this chart pattern.