Daily Forex Update: AUD/USD

By: Dima Chernovolov

AUD/USD continues to fall inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (one bar), average Uniformity (5 bars) and strong Clarity (8 bars). AUD/USD is expected to fall further inside this Down Channel – in line with the earlier breakout of the support area shown below.

As can be seen from the daily AUD/USD chart below, price earlier broke the support area lying between the key support level 0.7650 (which reversed the price in March), support trendline from December and the lower trendline of the daily down channel from February. This price zone is acting as resistance area after it was broken. The proximity of this resistance area adds to the probability AUD/USD will continue to fall inside this Down Channel.

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