Trade of the Day: AUD/NZD
By: Dima Chernovolov
AUD/NZD continues to rise inside the 4-hour 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 sharp Initial Trend (10 bars), higher Uniformity (3 bars) and substantial Clarity (9 bars). AUD/NZD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily AUD/NZD chart below, the pair earlier reversed up from the support area lying between the key support level 1.0500, lower daily Bollinger Band and the 50% Fibonacci correction of the previous upward impulse 1 from the start of this month. The proximity of this support area adds to the likelihood AUD/NZD will continue to rise inside this Down Channel.