Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD recently broke the 4-hour Down Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which reflects the sharp Initial Trend (10 bars), average Uniformity (5 bars) and significant Clarity (8 bars). NZD/USD is expected to rise further toward the forecast price 0.6330 – in line with the earlier upward reversal from the powerful support area shown below.

As can be seen from the support NZD/USD chart below, the pair earlier previously reversed up sharply from the major support area lying between the long-term support level 0.6260 (which stopped the sharp downtrend in 2015) and the lower weekly Bollinger Band. The proximity of this support area increases the probability NZD/USD will continue to rise toward the forecast price 0.6330.