Daily Forex Update: EUR/USD

By: Dima Chernovolov

EUR/USD continues to rise after the earlier breakout of the uniform Falling Wedge chart pattern which was recently identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which reflects the medium Initial Trend (5 bars), substantial Uniformity and Clarity (rated at the 8 and 7 bar levels). EUR/USD is expected to rise toward the forecast price 1.1829 – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily EUR/USD chart below, the breakout of this Falling Wedge was preceded by the upward reversal from the support area lying between the key support level 1.1670 (monthly low from August), 50% Fibonacci correction of the upward impulse from June, lower daily Bollinger Band and the 100-day moving average. The proximity of this support area adds to the likelihood EUR/USD will continue to rise toward the forecast price 1.1829.

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