Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD recently broke the key resistance level 1.1327 which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this resistance 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 rise toward the forecast price 1.1394.

As can be seen from the daily EUR/USD chart below – the price earlier reversed up from the support zone lying between the key support level 1.1230 (which has been reversing the price from the end of November) and the lower daily Bollinger Band. The proximity of this support area increases the probability EUR/USD will continue to rise toward the forecast price 1.1394.