Trade of the Day: AUD/NZD
By: Dima Chernovolov
AUD/NZD continues to fall inside the 4-hour Falling Wedge chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (8 bars) and lower Clarity (4 bars). AUD/NZD is expected to fall further inside Falling Wedge – 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 earlier broke through the support area located between the key support level 1.0655 (which has been reversing the price from September) and the 38,2% Fibonacci correction of the previous sharp upward impulse from August. This price zone is acting as the strong resistance area after it was broken. The proximity of this resistance area increases the probability AUD/NZD will continue to fall inside this Falling Wedge.