By: Dima Chernovolov
EUR/NZD recently broke the daily Rising Wedge chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the strong Initial Trend and Uniformity (7 bars) and higher Clarity (8 bars). EUR/NZD is expected to fall toward the forecast price 1.7226 – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily EUR/NZD chart below, the top of this Rising Wedge formed when the price reversed down with the daily Evening Star from the resistance area lying between the key resistance level 1.7600 (which has been reversing the price from August) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/NZD will continue to fall toward the forecast price 1.7226.