By: Dima Chernovolov
EUR/NZD recently broke the 4-hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the above-average Initial Trend (6 bars), medium Uniformity (5 bars) and strong Clarity (9 bars). EUR/NZD is expected to fall toward the forecast price 1.6757.
As can be seen from the daily EUR/NZD chart below – the pair earlier reversed down from the resistance area located between the long-term resistance level 1.6950 (former multi-month high from July) and the upper daily Bollinger Band. The proximity of this resistance zone and the overbought daily Stochastic increase the probability EUR/NZD will continue to fall toward the forecast price 1.6757.