Daily Forex Update: NZD/USD
By: Dima Chernovolov
NZD/USD continues to fall inside the clear daily Descending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 6-bar level – which is the result of the slow Initial Trend (4 bars), above-average Uniformity (6 bars) and maximum Clarity (10 bars). NZD/USD is expected to fall further inside this Descending Triangle – in line with the earlier downward reversal from the resistance zone shown below.
As can be seen from the daily NZD/USD chart below, the price earlier reversed down with the daily Evening Star from the resistance lying between the multi-month resistance level 0.7400 (which has been reversing the price from last September) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability NZD/USD will continue to fall inside this Descending Triangle.
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