By: Dima Chernovolov
EUR/NZD recently broke the 15-minute Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which reflects the strong Initial Trend (9 bars), significant Uniformity (7 bars) and maximum Clarity (10 bars). EUR/NZD expected to fall toward the forecast price 1.7565 – in line with the earlier downer reversal from the key resistance area shown below.
As can be seen from the daily EUR/NZD chart below – the top of this Rising Wedge formed when the price reversed down from the resistance area lying between the multi-month resistance level 1.7700 (which stopped the pair in October) and the upper daily Bollinger Band. The proximity of this resistance area and the overbought daily Stochastic increase the probability EUR/NZD will continue to fall toward the forecast price 1.7565.