By: Dima Chernovolov
NZD/USD recently broke the 4-hour Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Down Channel at the 9-bar level – which is the result of the strong Initial Trend (10 bars), significant Uniformity (8 bars) and strong Clarity (8 bars). NZD/USD is expected to rise toward the forecast price 0.7264.
As can be seen from the daily NZD/USD chart below, the price earlier reversed up from the support area lying between the support level 0.7095, lower daily Bollinger Band, support trendline and the 38.2% Fibonacci correction of the previous upward impulse from November. The strength of the daily uptrend and the proximity of this support area add to the probability NZD/USD will continue to rise toward the forecast price 0.7264.