Trade of the Day: AUD/USD
By: Dima Chernovolov
AUD/USD continues to fall inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the above-average Initial Trend (6 bars) and strong Uniformity and Clarity (rated at the 8 bar and 9 bar levels respectively). AUD/USD is expected to fall further inside this Down Channel – in line with the earlier breakout of the support area shown below.
As can be seen from the daily AUD/USD chart below, the price earlier broke the support zone located between the key support level 0.7200, support trendline of the daily up channel from June and the 38.2% Fibonacci correction of the upward impulse from July. This price area is acting as the strong resistance zone after it was broken. The proximity of this resistance zone increases the probability AUD/USD will continue to fall inside this Down Channel.