Daily Forex Update: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the clear Down Channel chart pattern which was previously identified by Autochartist on the daily charts. Autochartist rates the quality of this Down Channel at the 6-bar level – which reflects the slow Initial Trend (2 bars), strong Uniformity (7 bars) and significant Clarity (8 bars). EUR/USD is expected to fall further inside this Down Channel – in line with the earlier breakout of the major support level shown below.

As can be seen from the daily EUR/USD chart below, the pair recently broke below the major support level 1.1500, which has been reversing the price from May. This price level is acting as a strong resistance level after it was broken. The proximity of this resistance level increases the probability EUR/USD will continue to fall inside this Down Channel.

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