Daily Forex Update: EUR/USD

By: Dima Chernovolov

Autochartist recently identified the breakout of the high Quality Up Channel on the daily EUR/USD   charts. Autochartist rates the Quality of this chart pattern at the 8 bars level – which is the result of the strong Initial Trend (8 bars), above-average Uniformity (6 bars) and higher Clarity (7 bars). The strength of this Up Channel breakout is measured by Autochartist at the 10-bar level – which adds to the probability the pair will continue to fall to the Forecast Price 1.1069 in the coming trading sessions.

As you can see from the daily EUR/USD chart below, the top of this Up Channel formed when the pair reversed down with the daily Japanese candlesticks reversal pattern Falling Star from the major long-term resistance level 1.1600 (which also previously reversed the price in August of 2015, as can be seen below). The breakout of this chart pattern continues the previous downward impulse from 1.1600. The pair will need to break the support level 1.1200 (monthly low from April) to reach the Forecast Price 1.1069.

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