By: Dima Chernovolov
Autochartist recently identified the well-formed Up Channel chart pattern on the daily EUR/USD charts. Autochartist rates the quality of this Channel chart at the 7-bar level – which is the result of the medium-strength Initial Trend (5 bars), substantial Uniformity (8 bars) and significant Clarity (7 bars). EUR/USD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the combined support area highlighted below.
As can be seen from the daily EUR/USD chart below, the price recently reversed up from the support area lying at the intersection of the key support level 1.1870 (which has been reversing the price from the end of August), lower daily Bollinger Band and 50% Fibonacci correction of the earlier upward price impulse from August. The proximity of this support area increases the probability EUR/USD will continue to rise inside this Up Channel.
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