Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to fall inside the 30-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Down Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and maximum Clarity (10 bars). NZD/CAD is expected to fall further inside this Down Channel.

As can be seen from the daily NZD/CAD chart below – the price earlier reversed down from the resistance zone lying between the resistance level 0.9070 (which also stopped the price at the start of March), upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from February. The proximity of this resistance area adds to the probability /CAD will continue to fall inside this Down Channel.