Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD recently broke the daily Ascending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Ascending Triangle at the 5-bar level – which is the result of the slow Initial Trend (4 bars), medium Uniformity (5 bars) and lower Clarity (4 bars). AUD/USD is expected to rise toward the forecast price 0.6985 – in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily AUD/USD chart below – the price earlier broke the resistance area lying between the resistance level 0.6930 (monthly high from November) and the 61.8% Fibonacci correction of the previous downward impulse from July. This price area is acting as the significant support area after it was broken.  The proximity of this support area increases the probability AUD/USD will continue to rise toward the forecast price 0.6985.