Trade of the Day: NZD/CAD
By: Dima Chernovolov
NZD/CAD recently formed the hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the strong Initial Trend (7 bars), lower Uniformity and Clarity (rated at 3 ad 3 bars respectively). NZD/CAD is expected to fall further inside this Up 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 pair recently reversed down from the strong resistance area lying between the pivotal resistance level 0.8540 (which has been reversing the price form March) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability NZD/CAD will continue to fall inside this Up Channel.