Trade of the Day: EUR/NZD
By: Dima Chernovolov
EUR/NZD continues to rise inside the 4-hour Up Channel chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and strong Clarity (8 bars). EUR/NZD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily EUR/NZD chart below, the pair earlier reversed up from the support area lying between the key support level 1.7120 and the 50% Fibonacci correction of the previous upward impulse 1 from the start of June. The proximity of this support area adds to the likelihood EUR/NZD will continue to rise inside this Up Channel.