Trade of the Day: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to fall inside the clear daily Down Channel chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the strong Initial Trend (7 bars), substantial Uniformity (8 bars) and maximum Clarity (10 bars AUD/NZD is expected to fall further inside this Down Channel – in line with the earlier breakout of the support area shown below.

As can be seen from the daily AUD/NZD chart below, the price recently broke the support area lying between the support level 1.0430 and the 61.8% Fibonacci correction of the sharp daily upward impulse from March. This price area is acting as strong resistance zone after it was broken. The proximity of this resistance area adds to the probability AUD/NZD will continue to fall inside this Down Channel.