Trade of the Day: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to rise inside the hourly Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (9 bars). AUD/NZD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance level shown below.

As can be seen from the daily AUD/NZD chart below – the price earlier broke above the powerful resistance level 1.0865 (which has been reversing the price from last November). This price level is acting as the strong support level after it was broken. The proximity of this support level and the strength of the active daily uptrend heighten the probability AUD/NZD will continue to rise inside this Up Channel.