By: Dima Chernovolov
AUD/NZD continues to rise inside the well-formed hourly Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 8-bar level – which is the result of the above-average Initial Trend (6 bars), stung Uniformity (8 bars) and near-maximum 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 previously broke above the resistance area made out of the key resistance level 1.0600 (which stopped the sharp correction in the middle of November), resistance trendline of the daily down channel from October and the 38.2% Fibonacci correction of the downward impulse from October). The price zone is acting as the support area after it was broken. The proximity of this support area increases the probability AUD/NZD will continue to rise inside this Up Channel.