Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD continues to rise inside the hourly Rising Wedge chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (3 bars), medium Uniformity (5 bars) and higher Clarity (6 bars). AUD/USD expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the key 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 levels 0.6660, 0.6685 and the lower daily Bollinger Band. The proximity of this support area increases the probability AUD/USD will continue to rise inside this chart pattern.