Trade of the Day: AUD/USD
By: Dima Chernovolov
AUD/USD continues to rise inside the well-formed 4-hour Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), above-average Uniformity (6 bars) and significant Clarity (9 bars). AUD/USD recently is expected to rise further inside this Falling Wedge – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily AUD/USD chart below – the bottom of this Falling Wedge formed when the pair reversed up from the support area lying between the support level 0.6850 (low of the Morning Star from December), lower daily Bollinger Band, 100-day moving average and the 50% Fibonacci correction of the previous sharp upward price move from September. The proximity of this support area adds to the probability AUD/USD will continue to rise inside this chart pattern.