Daily Forex Update: EUR/USD
By: Dima Chernovolov
EUR/USD recently broke the clear Up Channel chart pattern which recently identified by Autochartist on the 4-hour charts. Autochartist rates the quality of this Up Channel at the 8-bar level – which is the result of the strong Initial Trend and Uniformity (both rated at the 7 bar level) and near-maximum Clarity (9 bars). EUR/USD is expected to fall toward the forecast price 1.1904 – in line with the earlier downward reversal from the key resistance zone shown below.
As can be seen from the daily EUR/USD chart below, the breakout of this Up Channel follows the earlier downward reversal from the strong resistance zone lying between the long-term resistance level 1.2100 (which stopped the sharp daily uptrend in September) and the upper daily Bollinger Band. The proximity of this resistance zone increases the probability EUR/USD will continue to fall toward the forecast price 1.1904.
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