Trade of the Day: AUD/NZD
By: Dima Chernovolov
AUD/NZD continues recently broke the 4-hour Up Channel chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Up Channel at the 8-bar level – which is the result of the above-average Initial Trend (6 bars), strong Uniformity (8 bars) and near-maximum Clarity (9 bars). AUD/NZD is expected to fall toward the forecast price 1.0611.
As can be seen from the daily AUD/NZD chart below, the breakout of this Up Channel follows the earlier downward reversal from the major resistance area lying between the resistance levels 1.0800 and 1.0850 – strengthened by the upper daily Bollinger Band. The proximity of this resistance zone increases the probability AUD/NZD will continue to fall toward the forecast price 1.0611.