Daily Forex Update: EUR/USD

By: Dima Chernovolov

EUR/USD continues to rise inside the clear Up Channel chart pattern which was recently identified by Autochartist on the daily charts. Autochartist rates the quality of this Up Channel at the 5-bar level – which reflects the slow Initial Trend (3 bars), average Uniformity (5 bars) and near-maximum Clarity (9 bars). EUR/USD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support zone highlighted below.

As can be seen from the daily EUR/USD chart below, the price recently reversed up from the support zone lying between the key support level 1.1870 (former resistance level from the start of August), support trendline of the longer-term daily Up Channel from May (which encloses this Up Channel) and the 38.2% Fibonacci correction of the upward price impulse from the middle of August. The proximity of this support area increases the probability EUR/USD will continue to rise inside Up Channel.

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