Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD continues to rise inside the 30-minute Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), strong Uniformity (9 bars) and significant Clarity (7 bars). NZD/USD is expected to rise further inside this Up Channel.

As can be seen from the daily NZD/USD chart below – the pair earlier reversed up from the support area located between the long-term support level 0.6950 (which has been reversing the price from the end of March) and the lower daily Bollinger Band. The proximity of this support zone increases the probability NZD/USD will continue to rise inside this Up Channel.