Trade of the Day: NZD/USD
By: Dima Chernovolov
NZD/USD continues to fall after breaking the 4-hour Flag chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Flag at the high 8-bar level – which is the result of the strong Initial Trend (10 bars), low Uniformity (2 bars) and near-maximum Clarity (9 bars). NZD/USD is expected to fall toward the forecast price 0.6575.
As can be seen from the daily NZD/USD chart below – the pair earlier reversed down from the resistance zone located between the key resistance level 0.6700 (former Double Bottom from December) and the 50% Fibonacci correction of the previous downward impulse from the start of January. The proximity of this resistance zone and the clear daily downtrend increase the probability NZD/USD will continue to fall toward the forecast price 0.6575.