Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD recently broke the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which reflects the slow Initial Trend (4 bars), below average Uniformity and Clarity (4 bars). AUD/USD is expected to fall toward the forecast price 0,6814 – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily AUD/USD chart below – the price earlier reversed down from the resistance area lying between the multi-month resistance level 0.7030 (monthly high from November) and the upper daily Bollinger Band. The proximity of this resistance area and the overbought reading on the daily Stochastic increase the probability AUD/USD will continue to fall toward the forecast price 0,6814.