Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD continues to rise inside the clear daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the strong Initial Trend (9 bars), below-average Uniformity (4 bars) and higher Clarity (6 bars). NZD/USD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily NZD/USD chart below – the price earlier reversed up from the support area lying between the pivotal support level 0.6530 (former resistance from June), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse from May. The proximity of this support area adds to the probability NZD/USD will continue to rise inside this Up Channel.