By: Dima Chernovolov
NZD/USD continues to rise inside the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and higher Clarity (6 bars). NZD/USD is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily NZD/USD chart below – the price earlier broke the resistance area lying between the resistance level 0.6630 and the resistance trendline of the daily up channel from October. This price area is acting as the support area after it was broken. The proximity of this support area increases the probability NZD/USD will continue to rise inside this Rising Wedge.