Trade of the Day: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to fall inside the 15-minute Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which reflects 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 chart pattern – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily AUD/NZD chart below – the pair recently reversed down from the powerful resistance area located between the long-term resistance level 1.0865 (which has been reversing the price from the end of 2019) and the upper weekly Bollinger Band. The proximity of this resistance area adds to the probability AUD/NZD will continue to fall inside this Falling Wedge.