Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall in the direction of the key support level 1.1587, which was previously identified by Autochartist on the daily charts. Autochartist rates the Significance of this support level at the 3-bar level – which is the result of the three previous price reversals from this price level. EUR/USD is expected to continue to fall toward the support level 1.1587.

As can be seen from the daily EUR/USD chart below – the price earlier reversed down from the major resistance zone located between the key resistance level 1.1665 (former monthly low from August), upper daily Bollinger band and the 38.2% Fibonacci correction of the downward impulse from the start of September. The proximity of this resistance zone and clear daily downtrend increase the probability EUR/USD will continue to fall toward the support level 1.1587.