NZD/USD has recently completed the Falling Wedge chart pattern identified by Autochartist on the 4-hour charts. Autochartist rates the overall Quality of this chart pattern at the 6 bar level as a result of the above-average Initial Trend and Clarity (rated at the 7 and 6 bar levels respectively) and the lower Uniformity (4 bars). The completion of this chart pattern continues the predominant uptrend visible on the daily and the weekly NZD/USD charts. The higher Initial Trend of this chart pattern reflects the strength of the preceding sharp daily upward price impulse from the November of 2011. This preceding daily price impulse started when the previous weekly downward correction stopped at the combined support area made out of the major horizontal support level 0.7500 (which has reversed the pair up 3 times over the last few months) and the 38,2% Fibonacci Retracement of the previous longer-term weekly upward price impulse from the March 2009 to the July of 2011. The subsequent sharp daily upward impulse broke through the resistance trendline of the abovementioned downward weekly correction (rising to the top of this chart pattern, point A). The bottom of this Falling Wedge (point D on the chart below) formed when the pair reversed up from the 38,2% Fibonacci Retracement of the preceding daily upward price impulse (as is shown on the second chart below). NZD/USD is expected to rise further toward the Forecast Price 0.8307.
The following weekly NZD/USD chart demonstrates the technical price levels mentioned above:
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