Trade of the Day: NZD/CAD
By: Dima Chernovolov
NZD/CAD continues to fall inside the 15-minute Down Channel chart pattern, which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the significant Initial Trend (7 bars), medium Uniformity (5 bars) and strong Clarity (8 bars). NZD/CAD is expected to fall further inside this Down Channel.
As can be seen from the weekly NZD/CAD chart below – the price earlier reversed down from the resistance level 0.8340 (former strong support from 2020 and also from the start of 2022) intersecting with the 38.2% Fibonacci retracement of the weekly downward impulse from the start of 20200. The proximity of these resistance levels and the clear weekly downtrend increase the probability NZD/CAD will continue to fall inside this Down Channel.