AUD/NZD continues to rise inside the high-quality flag chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the quality of this flag at the 9 bar level – which is the result of the strong initial trend (rated at the highest 10-bar level), significant uniformity (8 bars) and maximum clarity (10 bars). AUD/NZD is expected to rise inside this flag – continuing the recent sharp upward reversal from the support zone shown below.
As can be seen from the daily AUD/NZD chart below, the bottom of this flag formed when the pair reversed up from the powerful zone lying between the long-term support level 1.0760 (previous strong resistance from September and October), lower daily Bollinger Band® and the 38.2% Fibonacci correction of the sharp upward impulse from January (high “Initial Trend” reflects its strength). The proximity of this support zone increases the probability AUD/NZD will continue to rise inside this flag.
