Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD continues to rise inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Down Channel at the 7-bar level – which is the result of the strong Initial Trend (10 bars), lower Uniformity (3 bars) and stronger Clarity (8 bars). NZD/CAD is expected to rise further inside this Down Channel.

As can be seen from the weekly NZD/CAD chart below – the pair earlier reversed up from the support area located between the long-term support level 0.8632 (which has been reversing the price from the middle of 2020) and the lower weekly Bollinger Band. The proximity of this support area, oversold weekly Stochastic increase the probability NZD/CAD will continue to rise inside this Down Channel.