EUR/NZD continues to decline after the recent completion of the high Quality Flag chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is rated at the 8 bar level as a result of the strong Initial Trend (measured at the maximum 10 bar level), below-average Uniformity (4 bars) and substantial Clarity (9 bars). The completion of this Flag continues the strong downtrend visible on the daily and the weekly EUR/NZD charts. The top of this chart pattern (point B on the chart below) formed when the pair reversed down from the resistance zone made out of the round price level 1.6000 and the 50% Fibonacci Retracement of the preceding sharp daily downward price impulse from May of this year. The pair is expected to fall further toward the Forecast Price 1.5630.
The following daily EUR/NZD chart shows the aforementioned resistance levels:
EUR/NZD" title="EUR/NZD" width="598" height="642">