Daily Forex Update: EUR/USD

By: Dima Chernovolov

EUR/USD recently broke the extended Down Channel chart pattern which was previously identified by Autochartist on the 4-hours charts. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the strong Initial Trend (7 bars), higher Uniformity (8 bars) and maximum Clarity (10 bars – increasing its visibility to the market participants). EUR/USD is expected to rise toward the forecast price 1.1930 – in line with the earlier upward reversal from the key support level shown below.

As can be seen from the daily EUR/USD chart below, the bottom of this Down Channel formed when the price reversed up from the multi-month support level 1.1560 (which also reversed the price in November of 2017) – strengthened by the lower daily Bollinger Band. The proximity of this support level and the oversold daily Stochastic both increase the probability EUR/USD will continue to rise toward the forecast price 1.1930.

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