Daily Forex Update: EUR/USD
By: Dima Chernovolov
EUR/USD continues to fall inside the daily Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel chart at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). EUR/USD is expected to fall further inside this Down Channel – in line with the earlier downward reversal form the resistance area shown below.
As can be seen from the daily EUR/USD below, the price earlier reversed down from the resistance area lying between the resistance level 1.1420, upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward impulse from January. The proximity of this resistance area increases the probability EUR/USD will continue to fall inside this Down Channel.