Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to fall inside the daily Rising Wedge chart pattern which was identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the medium Initial Trend (6 bars) and significant Uniformity and Clarity (7 bars). NZD/CAD is expected to fall further inside this chart pattern – 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 located between the resistance level 0.8550, upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward impulse from July. The proximity of this resistance area increases the probability NZD/CAD will continue to fall inside this Rising Wedge.