Trade of the Day: EUR/NZD

By: Dima Chernovolov

EUR/NZD recently broke the key support level 1.70330 which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the 3-bar level – which is the result of the three previous price reversals from this price level. EUR/NZD is expected to continue to fall toward the forecast price 1.6867.

As can be seen from the daily EUR/NZD chart below – the pair earlier broke the support area lying at the intersection of the round support level 1.7000 and the support trendline of the daily up channel from November. This price zone is acting as the resistance area after it was broken. The proximity of this resistance area adds to the probability EUR/NZD will continue to fall toward the forecast price 1.6867.