Trade of the Day: NZD/USD

By: Dima Chernovolov

NZD/USD recently broke the key support level 0.6875, which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 4-bar level – which is the result of the four previous price reversals from this price level. NZD/USD is expected to continue to fall toward the support level 0.6815.

As can be seen from the daily NZD/USD chart below – the price earlier reversed down from the resistance area located between the key resistance level 0.6990 (which has been reversing the price from March), the upper daily Bollinger Band and the 61.8% Fibonacci correction of the downward impulse from last October. The proximity of the aforementioned resistance area adds to the probability NZD/USD will continue to fall toward the support level 0.6815.