Trade of the Day: EUR/NZD
By: Dima Chernovolov
EUR/NZD continues to rise inside the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the slow Initial Trend (2 bars), higher Uniformity (6 bars) and near-maximum Clarity (9 bars). EUR/NZD is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the weekly EUR/NZD below, the pair earlier reversed up from the strong support area lying between the multi-month support level 1.6310 (which has been reversing the pair from September of 2017) and the lower weekly Bollinger Band. The proximity of this support area increases the probability EUR/NZD will continue to inside this Rising Wedge.