Trade of the Day: EUR/NZD

By: Dima Chernovolov

EUR/NZD continues to rise inside the daily Ascending Triangle chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 6-bar level – which reflects the slow Initial Trend (2 bars), significant Uniformity (7 bars) and strong Clarity (8 bars). EUR/NZD is expected to rise further inside this Ascending Triangle – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily EUR/NZD chart below, the price earlier reversed up from the key support area lying between the pivotal support level 1.7340 (which has been reversing the price form the end of September), lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from last month. The proximity of this support area increases the probability EUR/NZD will continue to rise inside this Ascending Triangle.