Daily Forex Update: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to fall inside the 30-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the medium Initial Trend (5 bars), average Uniformity (5 bars) and maximum Clarity (10 bars). EUR/AUD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the strong resistance area shown below.
As can be seen from the daily EUR/AUD chart below, the price earlier reversed down from the combined resistance area lying between the strong resistance level 1.5760 (which stopped the sharp impulse wave in November) and the upper daily Bollinger Band. The proximity of this resistance area and the overbought reading on the daily Stochastic indicator increase the probability EUR/AUD will continue to fall inside this Down Channel.
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