Daily Forex Update: AUD/USD

By: Dima Chernovolov

AUD/USD recently broke the “neckline” of the hourly Head and Shoulders chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Head and Shoulders at the 8-bar level – which is the result of the sharp Initial Trend (10 bars) and strong Uniformity and Clarity (both rated at the 8 bar level). AUD/USD is expected to fall further toward the forecast price 0.7319.

As can be seen from the daily AUD/USD chart below, the top of this Head and Shoulders chart pattern former when the price reversed down from the resistance zone lying between the key resistance level 0.7500 and the 50% Fibonacci correction of the previous downward impulse from June. The proximity of this resistance area increases the probability AUD/USD will continue to fall toward the forecast price 0.7319.

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