Daily Forex Update: EUR/AUD

By: Dima Chernovolov

EUR/AUD continues to rise sharply after the earlier breakout of the well-formed Down Channel chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the Quality of this Down Channel at the 6 bar level – which reflects the medium Initial Trend (5 bars), and near-maximum Uniformity and Clarity (both rated at the 9 bar level). Higher visibility of this chart pattern increases the probability EUR/AUD will continue to rise toward the forecast price 1.4660.

As can be seen from the daily EUR/AUD chart below, the breakout of this Down Channel coincided with the breakout of the resistance zone lying between pivotal resistance level 1.4300 (monthly high from March) and the 61.8% Fibonacci correction of the sharp downward impulse from December. This price zone is acting as support area after it was broken. The proximity of this support zone adds to the probability EUR/AUD will continue to rise toward the forecast price 1.4660.

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