By: Dima Chernovolov
NZD/CAD recently broke the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the sharp Initial Trend (10 bars), below-average (4 bars) and strong Clarity (8 bars). NZD/CAD is expected to fall further toward the forecast price 0.8798 – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily NZD/CAD chart below, the pair recently reversed down from the resistance area lying between the pivotal resistance level 0.9800 (former multi-month support from June and February) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability NZD/CAD will continue to fall toward the forecast price 0.8798.