Trade of the Day: EUR/NZD

By: Dima Chernovolov

EUR/NZD continues to fall inside the 15-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Falling Wedge at the 6-bar level – which is the result of the medium Initial Trend (5 bars), higher Clarity (6 bars) and substantial Uniformity (9 bars both). EUR/NZD is expected to fall further inside this Falling Wedge – in line with the recent downward reversal from the resistance area shown below.

As can be seen from the daily EUR/NZD chart below – the price earlier reversed down from the resistance area lying between the resistance level 1.69720, upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from the middle of December. The proximity of this resistance zone and the clear daily downtrend increase the probability EUR /NZD will continue to fall inside this Falling Wedge.