Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues fall inside the hourly Triangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Triangle at the 4-bar level – which is the result of the medium Initial Trend (5 bars) and above-average Clarity (6 bars). NZD/CAD is expected to fall further inside this Triangle – in line with the earlier downward reversal from the key 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 strong resistance level 0.9160 (which stopped the sharp uptrend at the start of December) and the upper daily Bollinger Band. The proximity of this resistance area and the overbought daily Stochastic increase the probability NZD/CAD will continue to fall inside this Triangle.