By: Dima Chernovolov
NZD/CAD continues to fall after the earlier breakout of the key hourly support level which was recently identified by Autochartist. Autochartist rates the Significance of this support level at the 4 bar level – which is the result of the four earlier price reversals from this price level. NZD/CAD is expected to fall further toward the forecast price 0.8418 – in line with the earlier downward reversal from the strong resistance zone shown below.
As can be seen from the daily NZD/CAD chart below – the price earlier reversed down sharply down from the resistance zone lying between the key resistance level 1.2285 (which has been repeatedly revering the pair from March) and the upper daily Bollinger Band. The proximity of this resistance zone adds to the probability NZD/CAD will continue to fall toward the forecast price 0.8418.