Trade of the Day: AUD/USD
By: Dima Chernovolov
AUD/USD continues to fall inside the 15-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 3-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (7 bars) and lower Clarity (2 bars). AUD/USD is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily AUD/USD below, the pair earlier reversed down from the key resistance area lying between the resistance level 0.7130, upper daily Bollinger Band and the resistance trendline from December. The proximity of this resistance area increases the probability AUD/USD will continue to fall inside this chart pattern.
