By: Dima Chernovolov
NZD/CAD continues to rise inside the daily Up Channel chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (7 bars) and strong Clarity (9 bars). NZD/CAD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily NZD/CAD chart below, the price earlier reversed up with the daily Morning Star from the support area lying between the key support level 0.8250 (which stopped the sharp downtrend in October) and the lower daily Bollinger Band. The proximity of this support area increases the probability NZD/CAD will continue to rise inside this Up Channel.