Daily Forex Update: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the high-quality Down Channel chart pattern which was earlier identified by Autochartist on the hourly charts. Autochartist measures the Quality of this Down Channel at the near-maximum, 9 bar level – which is the result of the sharp Initial Trend (10 bars) and substantial Uniformity and Clarity (both rated at the 8 bar level). EUR/USD is expected to continue to fall inside this Down Channel.

The maximum value of the Initial Trend reflects the sharpness of the previous daily upward impulse, which was recently stopped by the powerful resistance zone lying between the long-term resistance level 1.0800 (which has been steadily reversing EUR/USD from last December), upper daily Bollinger Band and the 50% Fibonacci correction of the downward impulse from last November. The strength of this resistance area increases the likelihood EUR/USD will continue to fall inside this Down Channel.

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