Trade of the Day: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to rise inside the 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (7 bars) and lower Clarity (4 bars). AUD/NZD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily AUD/NZD chart below – the pair earlier broke above the resistance area lying between the resistance level 1.0745 (former correction high from the end of June) and the 61.8% Fibonacci correction of the previous downward impulse from last month. This price zone is acting as the support area after it was broken. The proximity of this support area adds to the probability AUD/NZD will continue to rise inside this Up Channel.