By: Dima Chernovolov
EUR/AUD recently broke the clear daily Up Channel pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the below-average Initial Trend (4 bars), strong Uniformity (9 bars) and maximum Clarity (10 bars). EUR/AUD is expected to fall further toward the forecast price 1.5398 – which is also indicated by the technical setup shown below.
As can be seen from the daily EUR/AUD chart below, the breakout of this Up Channel coincided with the breakout of the support zone lying between the key support level 1.5650 (which has been reversing the price from February) and the 61.8% Fibonacci correction of the upward price impulse from January. 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 fall toward the forecast price 1.5398.
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