Autochartist recently identified the Clear Triangle chart pattern on the 4-hour NZD/USD charts. Autochartist rates the overall Quality of this chart pattern at the 5 bar level as a result of the low Initial Trend (measured at the one bar level), below-average Uniformity (4 bars) and near-maximum Clarity (9 bars). Higher Clarity reflects the smoothness of the price action during the formation of this chart pattern.
The top of this Triangle (point A on the chart below) formed when the pair reversed down from the strong resistance level 0.8450, which had also previously reversed the pair sharply down in March of 2012 (as can be seen on the second chart below). The recent reversal from 0.8450 coincided with the clear-cut bearish divergence on the daily MACD and RSI indicators – which adds to the likelihood that this currency pair will continue to decline inside this Triangle.
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The daily NZD/USD chart below shows the longer-term picture of this currency pair’s movement:
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