Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD recently broke the key support level 1.1283 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 5-bar level – which is the result of the five previous price reversals from this price level. EUR/USD is expected to continue to fall toward the forecast price 1.1244.

As can be seen from the daily EUR/USD chart below – the pair earlier broke the support trendline of the daily up channel from November. This support trendline and the recently broken support level 1.1283 are both acting as the resistance levels after they were broken. The proximity of these resistance levels and the clear daily downtrend increase the probability EUR/USD will continue to fall toward the forecast price 1.1244.