By: Dima Chernovolov
AUD/NZD continues to rise inside the daily Rising Wedge chart pattern which was
identified previously by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (8 bars) and significant Clarity (7 bars). AUD/NZD is expected to rise further inside this chart pattern – in line with the earlier breakout of the key resistance level shown below.
As can be seen from the daily AUD/NZD chart below, the pair earlier broke above the key resistance level 1.0790 (which reversed the price twice before – creating the Bearish Engulfing and the Shooting Star candlesticks reversal patterns). This price level is acting as strong support after it was broken. The proximity of this support level increases the probability AUD/NZD will continue to rise inside this Rising Wedge.