Trade of the Day: EUR/NZD

By: Dima Chernovolov

EUR/NZD recently broke the daily Ascending Triangle chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 7-bar level – which is the result of the slow Initial Trend (3 bars), average Uniformity (5 bars) and significant Clarity (7 bars). EUR/NZD is expected to rise toward the forecast price 1.7837 – in line with the earlier breakout of the key resistance level shown below.

As can be seen from the daily EUR/NZD, the breakout of this Ascending Triangle coincided with the breakout of the key resistance level 1.7837 (which has been reversing the price from the start of this year). This price level is acting as strong support after it was broken. The proximity of this support level increases the probability EUR/NZD will continue to rise toward the forecast price 1.7837.