Trade of the Day: EUR/NZD
By: Dima Chernovolov
EUR/NZD continues to fall inside the 15-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (2 bars), low Uniformity (3 bars) and above-average Clarity (6 bars). EUR/NZD is expected to fall farther inside this Falling Wedge.
As can be seen from the weekly EUR/NZD chart below – the pair earlier reversed down from the powerful resistance area located between the long-term resistance levels 1.7345, 1.750 (which reversed the pair at the start and at the end of last year respectively) and the upper weekly Bollinger Band. The proximity of this resistance area adds to the probability EUR/NZD will continue to fall inside this Falling Wedge.