Trade of the Day: EUR/NZD

By: Dima Chernovolov

EUR/NZD recently broke the hourly Triangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity (8 bars), and medium Clarity (5 bars). EUR/NZD is expected to rise toward the forecast price 1.5763.

As can be seen from the daily EUR/NZD chart below – the price earlier reversed up from the support zone set between the key support level 1.5630 (the previous monthly low from March) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily Stochastic indicator increase the probability EUR/NZD will continue to rise toward the forecast price 1.5763.