By: Dima Chernovolov
NZD/USD continues to rise inside 4-hour Rising Wedge chart pattern, which was earlier identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and strong Clarity (8 bars). NZD/USD is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the resistance zone highlighted below.
As can be seen from the daily NZD/USD chart below, the pair previously broke above the resistance zone lying between the resistance level 0.6940 (which also reversed the price earlier this month) and the resistance trendline of the wide daily up channel from September. This price area is acting as the strong support area after it was broken. The proximity of this support area and the strength of the active daily uptrend increase the probability NZD/USD will continue to rise inside this Rising Wedge.