By: Dima Chernovolov
EUR/NZD continues to rise inside the hourly Rising Wedge chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). EUR/NZD is expected to rise further inside this chart pattern – 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 bottom of this Rising Wedge formed when the pair reversed up with the daily candlesticks reversal pattern Bullish Engulfing from the support area lying between the key support level 1.7200, lower daily Bollinger Band and the 50% Fibonacci correction of the earlier upward impulse from September. The proximity of this support area increases the probability EUR/NZD will continue to rise inside this chart pattern.