By: Dima Chernovolov
NZD/USD continues to rise inside the clear Up Channel chart pattern which was recently identified by Autochartist on the 30-minute charts. Autochartist measures the quality of this Up Channel at the 5- bar level – which reflects the low Initial Trend and Uniformity (rated at the 2 and 3 bar levels respectively) and significant Clarity (9 bars). This Up Channel continues the earlier upward reversal from the support zone shown below.
As can be seen from the daily NZD/USD chart below, this Up Channel is aligned with the active daily impulse wave from the support zone located between the pivotal support level 0.7220 (which also reversed the pair sharply in July), lower daily Bollinger Band and the 50% Fibonacci correction of the upward impulse from May. Both of the previous 2 upward reversals from this support zone created the daily Japanese candlesticks reversal patterns Bullish Engulfing. The proximity of this support area adds to the probability NZD/USD will continue to rise inside this Up Channel.
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