Daily Forex Update: NZD/USD

Analyst, Autochartist
NZD/USD is moving inside the Rising Wedge chart pattern identified by Autochartist one the daily charts. The Quality of this chart pattern is measured at the 6 bar level as a consequence of the low Initial Trend (rated at one bar level) and high Uniformity and Clarity (both rated at the near maximum 9 bar level). The price has just reversed strongly from the upper resistance trendline of this chart pattern which also coincides with the previous monthly high at the round price level 0.8200. This level was able to stop and reverse sharp upward trend in the first quarter of 2008 (as can be seen on the second chart below). With the strong bearish divergence visible on the daily trending indicators, the pair is expected to correct further toward the lower support trendline of this chart pattern in the nearest time.

The following monthly NZD/USD chart shows the monthly high 0.8200 reversing the sharp monthly upward impulse in 2008.

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