Daily Forex Update: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the uniform Down Chanel chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the quality of this Down Chanel at the 6-bar level – which reflects the slow Initial Trend (2 bars), strong Uniformity (7 bars) and higher Clarity (2 bars). EUR/USD is expected to fall further inside this Down Chanel – in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily EUR/USD chart below, the pair recently broke trough the support area lying between the key support level 1.1600, support trendline of the daily Triangle from June and the 61.8% Fibonacci correction of the upward correction from June. This price zone is acting as resistance area after it was broken. The proximity of this resistance area increases the probability EUR/USD will continue to fall inside this Down Chanel

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