Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD continues to fall inside the clear 30-minute Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), strong Uniformity and Clarity (8 bars). AUD/USD expected to fall further inside this Falling Wedge – in line with the earlier breakout of the key support area shown below.

As can be seen from the daily AUD/USD chart below – the pair earlier broke through the support area lying between the support levels 0.6660 and 0.6690 (which have been reversing the price from last August). This price area is acting as the strong resistance zone after it was broken. The proximity of this resistance area increases the probability AUD/USD will continue to fall inside this Falling Wedge.