Trade of the Day: AUD/NZD

By: Dima Chernovolov

AUD/NZD continues to fall inside the 4-hour Up Channel chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the average Initial Trend (5 bars), medium Uniformity (5 bars) and strong Clarity (9 bars). AUD/NZD is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily AUD/NZD chart below, the pair earlier reversed down from the resistance area lying between the powerful resistance level 1.0840 (which stopped the sharp uptrend in September) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability AUD/NZD will continue to fall inside this Up Channel.