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 (2 bars), average Uniformity (5 bars) and higher Clarity (6 bars). AUD/USD is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily AUD/USD chart below, the price earlier reversed up from the support area lying between the pivotal support level 0.7230 (which reversed the price twice in August) and the 38.2% Fibonacci retracement of the upward impulse from July. The proximity of this support area and the clear daily uptrend add to the probability AUD/USD will continue to rise inside this Rising Wedge