Trade of the Day: NZD/CAD

By: Dima Chernovolov

NZD/CAD recently broke the 15-minute Ascending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), strong Uniformity (9 bars) and significant Clarity (8 bars). NZD/CAD is expected to rise toward the forecast price 0.8881.

As can be seen from the daily NZD/CAD chart below – the price earlier broke the resistance zone located between the resistance level 0.8790 and the 38.2% Fibonacci correction of the downward impulse from September. This price zone is acting as the support area after it was broken. The proximity of this support zone adds to the probability NZD/CAD will continue to rise toward the forecast price 0.8881.