Daily Forex Update: AUD/USD
By: Dima Chernovolov
AUD/USD continues to fall inside the well-formed Down Channel chart pattern which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (5 bars), significant Uniformity (8 bars) and higher Clarity (9 bars). AUD/USD is expected to fall further inside this Down Channel – in line with the active downward correction from the powerful resistance level shown below.
As can be seen from the daily AUD/USD chart below, the price earlier reversed down from the major resistance level 0.8070 (which also reversed the price in July and earlier this month). The last three downward reversals from the resistance level 0.8070 created the 3 consecutive daily Japanese candlesticks reversal patterns Shooting Star (highlighted below). The proximity of the resistance level 0.8070 increases the probability AUD/USD will continue to fall inside this Down Channel.
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