Trade of the Day: AUD/NZD
By: Dima Chernovolov
AUD/NZD recently broke the 4-hour Down Channel chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the significant Initial Trend (7 bars), strong Uniformity and Clarity (8 bars). AUD/NZD is expected to rise further toward the forecast price 1.0541 – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily AUD/NZD chart below, the price earlier reversed up with the daily Morning Star from the support area lying between the support level 1.0430, lower daily Bollinger Band and the 61.8% Fibonacci correction of the sharp upward impulse from March. The proximity of this support area adds to the probability AUD/NZD will continue to rise toward the forecast price 1.0541.
