Trade of the Day: EUR/NZD
By: Dima Chernovolov
EUR/NZD continues rise inside the 4-hour Triangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Triangle at the 4-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and medium Clarity (5 bars). EUR/NZD is expected to rise further inside this Triangle – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily EUR/NZD chart below, the price earlier reversed up from the support area located between the key support level 1.6960 (which stopped the sharp downtrend in November) and the lower daily Bollinger Band. The proximity of this support area and the clear bullish divergence on the daily RSI indicator increase the probability EUR/NZD will continue to rise inside this Triangle.