Trade of the Day: EUR/NZD

By: Dima Chernovolov

EUR/NZD continues to fall inside the 15-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Clarity (4 bars) and strong Uniformity (10 bars). EUR/NZD is expected to fall further inside this Down Channel

As can be seen from the daily EUR/NZD chart below – the pair earlier reversed down from the resistance area located between the key resistance level 1.7030 (which has been reversing the price from the middle of January) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability daily EUR/NZD will continue to fall inside this Down Channel.