Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD continues to fall inside the 15-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 below-average Initial Trend and Uniformity (4 bars) and strong Clarity (7 bars). NZD/USD is expected to fall further inside this Down Channel.

As can be seen from the daily NZD/USD chart below – the pair earlier reversed down from the resistance area located between the key resistance level 0.5800 (which has been reversing the pair from the start of October), upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from September. The proximity of this resistance area adds to the probability NZD/USD will continue to fall inside this Down Channel.