As is indicated in the following trade opportunity alert that I received today for EUR/NZD, this pair is expected to fall to the target level 1.5505 in 2 trading days. Autochartist sets the stop – level for this bearish forecast at 1.63635 (point B on the chart below, which is the top of the daily Up Channel chart pattern identified by Autochartist earlier). Point B formed when the pair reversed down from the upper resistance trendline of the daily Up Channel inside which the pair has been advancing – coinciding with the Fibonacci Cluster made out of the 61,8% Fibonacci Retracement of the previous downward price impulse from May of 2012 and the 38,2% Fibonacci Correction of the longer-term downward price impulse from November of 2011. The downward sloping moving average adds to the probability that EUR/NZD will fall to 1.5505 in 2 days.
EUR/NZD 1" title="EUR/NZD 1" width="600" height="335">
The following daily EUR/NZD chart displays the technical price levels mentioned above:
EUR/NZD 2" title="EUR/NZD 2" width="592" height="630">