Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD recently broke the key 30-minute support level 0.7200 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 6-bar level – which is the result of the six previous price reversals from this price level. NZD/USD is expected to continue to fall toward the support level 0.7151.

As can be seen from the daily NZD/USD chart below – the pair earlier reversed down from the resistance area lying between the resistance 0.7290 (which has been reversing the price from March) and the upper daily Bollinger Band. The proximity of this resistance area increase the probability daily NZD/USD will continue to fall toward the support level 0.7151.