By: Dima Chernovolov
EUR/NZD recently broke the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the sharp Initial Trend (10 bars) and strong Uniformity and Clarity (8 bars). EUR/NZD is expected to fall further toward the forecast price 1.6834 – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily EUR/NZD chart below, the pair recently reversed down from the combined resistance area lying between the key resistance level 1.7200 (which also stopped the previous sharp upward correction in January), upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward impulse from September. The proximity of this resistance area increases the probability EUR/NZD will continue to fall toward the forecast price 1.6834.