Daily Forex Update: AUD/USD
By: Dima Chernovolov
AUD/USD continues to rise after the earlier breakout of the high Quality Down Channel chart pattern which was earlier identified by Autochartist on the daily charts. Autochartist measures the Quality of this Down Channel at the 8 bar level – which is the result of the average Initial Trend (5 bars), substantial Uniformity (9 bars) and significant Clarity (8 bars). With the breakout of this chart pattern rated at the 8-bar level, AUD/USD is expected to rise to the Forecast Price 0.7559 in the nearest time.
As can be seen from the daily AUD/USD chart below – the bottom of this Down Channel formed near the strong support zone lying between the long-term support level 0.71600 (which also reversed the pair in May of 2016) and the lower weekly Bollinger Band. The upward reversal from this support zone created the weekly Japanese candlesticks reversal pattern Morning Star. The proximity of this support area adds to the probability AUD/USD will soon reach the Forecast Price 0.7559.
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