EUR/NZD has just completed the Down Channel chart pattern on the daily chart. The Quality of this chart pattern is rated at the 7 bar level which is the result of the high values of the Clarity and the Uniformity indicators (8 and 7 bars correspondingly). The bottom of this chart pattern formed at the combined support made out of the long-term major support price level 1.7000 ( which reversed the sharp down trend back in the middle of the 2007) and the projected down channel line of this chart pattern (coupled with strong bullish divergence of the daily and the weekly trending indicators). The price has just broken through the upper resistance line of this Down Channel with the Breakout whose strength is rated at the maximum 10 bar level. The price is expected to rise toward the Forecast Zone set between price levels 1.8883 and 1.8295.
The lower-term EUR/NZD shows the Rising Wedge chart pattern developing in accordance with upward breakout described above. The Uniformity of this chart pattern is measured at the 8 bar level reflecting the smoothness of the upward movement. The lower uptrend line of this chart pattern can be used for initiating buy entries protected with a tight stop-loss.
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