Trade of the Day: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to fall inside the 30-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Down Channel at the 3-bar level – which is the result of the slow Initial Trend (1 bar), low Uniformity (3 bars) and above-average Clarity (6 bars). AUD/NZD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area show below.

As can be seen from the daily AUD/NZD chart below – the price earlier reversed down from the resistance area located between the key resistance level 1.0800 (which has been reversing the pair from January), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from last August. The proximity of this resistance zone increases the probability AUD/NZD will continue to fall inside the 30-minute Down Channel.