By: Dima Chernovolov
AUD/USD continues to rise inside the clear daily Flag chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Flag at the 7-bar level – which is the result of the sharp Initial Trend (10 bars), below-average Uniformity (4 bars) and near-maximum Clarity (9 bars). AUD/USD is expected to rise further inside this Flag – in line with the earlier breakout of the resistance level shown below.
As can be seen from the daily AUD/USD chart below – the price earlier broke the key resistance level 0.7240 (which stopped the price twice from the start of this month). This price level is acting as the support level after it was broken. The proximity of this support level and the strength of the daily uptrend increase the probability AUD/USD will continue to rise inside this Flag.