Daily Forex Update: NZD/USD
By: Dima Chernovolov
NZD/USD has recently completed the well-formed Triangle chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is rated at the 5 bar level as a result of the low Initial Trend (measured at the one bar level) and significant Uniformity and Clarity (both rated at the 7 bar level). This Triangle breakout continues the recent sharp price reversal (which started at the top of this Triangle, point A below) from resistance area made out of the upper resistance trendline of the longer-term weekly Triangle from the March of 2011 and the round price level 0.8200 (as is shown on the second chart below). The pair is expected to fall further in the direction of the Forecast Price 0.8046.
The weekly NZD/USD chart below shows the longer-term picture of this currency pair’s movement:
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