Trade of the Day: EUR/NZD
By: Dima Chernovolov
EUR/NZD continues to rise inside the 30-minute Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Down Channel at the 7-bar level – which is the result of the significant Initial Trend and Uniformity (7 bars) and higher Clarity (8 bars). EUR/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 EUR/NZD chart below, the price earlier reversed up from the key support area lying between the powerful support level 1.6775 (which also stopped the pair at the end of last month) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily RSI indicator increase the probability EUR/NZD will continue to rise inside this Down Channel.