Trade of the Day: NZD/CAD
By: Dima Chernovolov
NZD/CAD continues to fall inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bars), strong Uniformity (8 bars) and significant Clarity (7 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 broke the support zone lying between the key support level 0.8770 (which stopped the previous impulse) and the 38.2% Fibonacci correction of the downward impulse from September. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone adds to the probability NZD/CAD will continue to fall inside this Down Channel.