Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD continues to rise inside the hourly Rising Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars)  and strong Clarity (8 bars). NZD/USD is expected to rise further inside this chart pattern – 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 located between the support level 0.6500 (which has been reversing the price from the middle of July), lower daily Bollinger Band and the 38.2% Fibonacci correction of the upward impulse from May.  The proximity of this support zone and the strong daily uptrend increase the probability NZD/USD will continue to rise inside this Rising Wedge.