Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD continues to fall inside the daily 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), significant  Uniformity (7 bars) and higher Clarity (8 bars). NZD/USD is expected to rise further inside this Up Channel.

As can be seen from the daily NZD/USD chart below – the price earlier reversed up from the support zone lying between the key support 0.6740 (which has been reversing the price from the start of December) and the lower daily Bollinger Band. The proximity of this support zone adds to the probability NZD/USD will continue to rise inside this Up Channel.