By: Dima Chernovolov
NZD/USD continues to fall inside the 60-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bars), significant Uniformity (7 bars) and higher Clarity (8 bars). NZD/USD is expected to fall further inside this Down Channel.
As can be seen from the daily NZD/USD chart below – the price earlier broke the key support level 0.6860 (former monthly low from the end of September). This level is acting as the strong resistance level after it was broken. The proximity of this resistance level increases the probability NZD/USD will continue to fall inside this Down Channel.