Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to fall inside the daily Down Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which reflects the medium Initial Trend (5 bars), lower Uniformity (3 bars) and strong Clarity (7 bars). EUR/NZD is expected to rise further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily NZD/CAD chart below, the price earlier reversed down from the resistance area lying between the resistance level 0.8415 (which has been reversing the price form the start of October), upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from August. The proximity of this resistance area increases the probability NZD/CAD will continue to fall inside this Down Channel.