By: Dima Chernovolov
NZD/CAD continues to rise inside in the direction of the hourly key resistance level 0.8831(of the type Approach) which was previously identified by Autochartist. Autochartist rates the significance of this key resistance level at the 4-bar level – which is the result of the 4 previous price reversals from this price level. NZD/CAD is expected to rise toward the resistance level 0.8831 – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily NZD/CAD chart below – the price earlier reversed up from the support area located between the key support level 0.8750 (which has been reversing the price from October) and the lower daily Bollinger Band. This price area is acting as the support zone after it was broken. The proximity of this support area and the oversold daily Stochastic add to the probability NZD/CAD will continue to rise toward the resistance level 0.8831.