By: Dima Chernovolov
AUD/NZD continues to fall inside the 30-minute Falling Wedge chart pattern, which was earlier identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and significant Clarity (7 bars). AUD/NZD is expected to fall further inside this Falling Wedge in line with the earlier breakouts of the major support area shown below.
As can be seen from the daily AUD/NZD chart below, the price earlier broke the support area located between the long-term support level 1.0550 (which has been reversing the price from July) and the 50% Fibonacci correction of the daily uptrend from March – which added to the bearish pressure on AUD/NZD. This price zone is acting as the resistance area after it was broken. The proximity of this resistance area adds to the probability AUD/NZD will continue to fall inside this Falling Wedge.