Daily Forex Update: EUR/AUD

By: Dima Chernovolov

EUR/AUD has been rising in the uniform Rising Wedge chart pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Rising Wedge at the 3-bar level – which is the result of the slow Initial Trend (one bar), above-average Uniformity (6 bars) and below-average Clarity (4 bars). EUR/AUD is expected to rise further inside this chart pattern – in line with the earlier breakout of the powerful resistance area highlighted below.

As can be seen from the weekly EUR/AUD chart below, the price earlier broke through the powerful resistance area lying between the long-term resistance level 1.5600 (which stopped the previous sharp daily uptrend in 2016) and the resistance trendline of the weekly Up Channel from July. This price zone is acting as support area after it was broken. The proximity of this support area adds to the likelihood EUR/AUD will continue to advance inside this Rising Wedge.

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