By: Dima Chernovolov
EUR/AUD continues to fall inside the clear 4-hour Down Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (4 bars), lower Uniformity 3 bars) and strong Clarity (8 bars). EUR/AUD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the of the major resistance level shown below.
As can be seen from the daily EUR/AUD chart below, the top of this Down Channel formed near the resistance area located between the key resistance level 1.6330 (which also stopped the previous sharp uptrend in September) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/AUD will continue to fall inside this Down Channel.
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