Daily Forex Update: AUD/NZD
By: Dima Chernovolov
Autochartist has recently identified the Uniform Triangle chart pattern on the 4-hour AUD/NZD charts. The overall Quality of this chart pattern is measured at the 6 bar level as a result of the strong Initial Trend (measured at the 8 bar level), significant Uniformity (7 bars) and average Clarity (5 bars). This chart pattern develops in line with the long-term uptrend that can be seen on the daily and the weekly AUD/NZD charts. The high Initial Trend reflects the strength of the preceding upward price thrust which broke the resistance trendline of the longer-term weekly Triangle from the June of 2010. The bottom of this Triangle (point D on the chart below) formed at the combined support made out of the aforementioned resistance trendline (acting as support now after having been broken) and the 50% Fibonacci Retracement of the preceding upward price impulse from the end of June. The pair is expected to rise further toward the upper resistance trendline of this Triangle.
The weekly AUD/NZD chart below shows the longer-term picture of this currency pair’s movement:
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