Trade of the Day: AUD/USD
By: Dima Chernovolov
AUD/USD continues to rise inside the 4-hour Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of Ascending Down Channel at the 9-bar level – which is the result of the strong Initial Trend (10 bars), above-average Uniformity (6 bars) and maximum Clarity (10 bars). AUD/USD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area highlighted below.
As can be seen from the daily AUD/USD chart below – the bottom of this Down Channel formed when the price reversed up from the support area lying between the key support level 0.6690 (which has been reversing the price from August) and the lower daily Bollinger Band. The proximity of this support area increases the probability AUD/USD will continue to rise inside this Down Channel.