Trade of the Day: EUR/NZD

By: Dima Chernovolov

EUR/NZD continues to rise inside the 15-minute Down Chanel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Chanel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and high Clarity (9 bars). EUR/NZD expected to fall further inside this Down Chanel – in line with the earlier downward reversal from the resistance zone shown below.

As can be seen from the daily EUR/NZD chart below – the price earlier reversed down from the resistance zone located between the key resistance level 1.8250 (which has been reversing the price from April) and the upper daily Bollinger Band. The proximity of this resistance zone adds to the probability EUR/NZD will continue to fall inside this Down Chanel.