Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD continues to rise inside the 15-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 7-bar level – which is the result of the slower Initial Trend (4 bars) and strong Clarity and substantial Uniformity (9 bars both). NZD/USD is expected to rise further inside this Up Channel – in line with the recent breakout of the resistance area shown below.

As can be seen from the daily NZD/USD chart below – the price earlier broke the resistance area lying between the resistance level 0.7065 and the 38.2% Fibonacci correction of the downward impulse from the middle of March. This price zone is acting as the support zone after it was broken. The proximity of this support zone adds to the probability NZD/USD will continue to rise inside this Up Channel.