Daily Forex Update: EUR/AUD

By: Dima Chernovolov

EUR/AUD continues to decline inside the uniform Falling Wedge chart pattern which was previously identified by Autochartist on the 15-minute charts. Autochartist rates the Quality of this Falling Wedge at the 4-bar level – which reflects the slow Initial Trend (one bar), significant Uniformity (7 bars) and above-average Clarity (6 bars). EUR/AUD is expected to fall further inside this Falling Wedge  – in line with the earlier breakout of the support area shown below.

As can be seen from the daily EUR/AUD chart below, the price earlier broke through the combined support area lying between the pivotal support level 1.4630 (which has been reversing the price from May) and the 50% Fibonacci correction of the previous sharp upward price thrust from April. This price zone is acting as resistance area after it was broken.  The proximity of this resistance area increases the probability EUR/AUD will continue to decline inside this Falling Wedge.

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