By: Dima Chernovolov
EUR/NZD continues to fall inside the hourly Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). EUR/NZD is expected to fall further inside this chart pattern – in line with the earlier downward reversal from the long-term resistance area shown below.
As can be seen from the weekly EUR/NZD chart below, the pair recently reversed down with the weekly Shooting Star from the long-term resistance area lying between the long-term resistance level 1.7400 (which stopped the sharp uptrend in 2017) and the upper weekly Bollinger Band. The proximity of this resistance zone increases the probability EUR/NZD will continue to fall inside this Falling Wedge.
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