By: Dima Chernovolov
NZD/USD continues to fall inside the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which is the result of the strong Initial Trend (10 bars), above-average Uniformity (6 bars) and medium Clarity (5 bars). NZD/USD is expected to fall further inside this Rising Wedge – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily NZD/USD chart below – the pair recently reversed down from the resistance area zone located between the pivotal resistance level 0.6080 (which previously stopped the sharp daily impulse in March), upper daily Bollinger Band and the 50% Fibonacci retracement of the downward impulse from January. The proximity of this resistance area increases the probability NZD/USD will continue to fall inside this chart pattern.