Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to rise inside the 30-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 7-bar level – which is the result of the average Initial Trend (5 bars), strong Clarity (7 bars) and near-maximum Uniformity (9 bars). NZD/CAD is expected to rise further inside this Up Channel – in line with the recent breakout of the resistance area show below.

As can be seen from the daily NZD/CAD recently chart below – the price earlier broke the resistance zone lying between the key round resistance level 0.900 and the 38.2% Fibonacci correction of the downward impulse from February. This price area is acting as the support zone after it was broken. The proximity of this support area increases the probability NZD/CAD will continue to rise inside this 30-minute Up Channel.