Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD continues to rise inside the daily Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and higher Clarity (6 bars). AUD/USD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance level shown below.

As can be seen from the following chart, the price previously broke above the key resistance level 0.7400 (which stopped the sharp uptrend in September). This price level is acting as the strong support level after it was broken. The proximity of this support level and the strength of the active daily uptrend increase the probability AUD/USD will continue to rise inside this Up Channel.