Trade of the Day: EUR/NZD

By: Dima Chernovolov

EUR/NZD recently broke the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 6-bar level – which is the result of the sharp Initial Trend (10 bars), average Uniformity (5 bars) and significant Clarity (8 bars). EUR/NZD is expected to fall toward the forecast price 1.6685 – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily EUR/NZD chart below – the price earlier reversed down sharply from the resistance area lying between the resistance level 1.6860 (former strong support from December) and the upper daily Bollinger Band. The proximity of this resistance area and the strength of the active downtrend increase the probability EUR/NZD will continue to fall toward the forecast price 1.6685 in the nearest time.