Trade of the Day: NZD/USD
By: Dima Chernovolov
NZD/USD recently broke the daily Ascending Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 7-bar level – which reflects the slow Initial Trend (2 bars) and strong Uniformity and significant Clarity (9 bars). NZD/USD is expected to rise toward the forecast price 0.6889.
As can be seen from the daily NZD/USD chart below – the breakout of this Ascending Triangle coincided with the breakout of the key resistance level 0.6580 (former support from January). This price level is acting as the support level after it was broken. The proximity of this support level and the strength of the uptrend visible on the daily charts increase the probability NZD/USD will continue to rise toward the forecast price 0.6889.