Trade of the Day: EUR/AUD

By: Dima Chernovolov

EUR/AUD continues to fall inside the 15-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars) , significant Uniformity (7 bars) and higher Clarity (8 bars). EUR/AUD is expected to fall further inside this Falling Wedge.

As can be seen from the daily EUR/AUD chart below – the price earlier reversed down from the resistance zone lying between the key resistance level 1.5700 (former strong support from June and July), upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from September. The proximity of this resistance zone increases the probability EUR/AUD will continue to fall inside this Falling Wedge.