Daily Forex Update: AUD/USD

By: Dima Chernovolov

AUD/USD continues to fall inside the clear Up Channel chart pattern was previously identified by Autochartist on the 4-hours charts. Autochartist measures the Quality of this Up Channel at the 4 bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (3 bars) and near-maximum Clarity (9 bars). AUD/USD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area described below.

As can be seen from the daily AUD/USD chart below, the price earlier broke the resistance zone located between the resistance level 0.7580 (which has been reversing the price from March) and the 61.8% Fibonacci correction of the downward impulse from March. This price zone is acting as support area after it was broken. The close proximity of this support area adds to the probability AUD/USD will continue to rise inside this Up Channel.

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