Trade of the Day: AUD/USD
By: Dima Chernovolov
AUD/USD recently reversed up from the lower support trendline of the 4-hour Rectangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Rectangle at the 9-bar level – which is the result of the strong Initial Trend (10 bars), significant Uniformity (7 bars) and substantial Clarity (8 bars). AUD/USD is expected to rise further inside this Rectangle.
As can be seen from the daily AUD/USD chart below, the price earlier reversed up from the support area lying between the key support level 0.7665 (which has been reversing the price from the start of January), lower daily Bollinger Band and the 38.2% Fibonacci correction level of the previous upward impulse 5 from December. The proximity of this support area and the strength of the active daily uptrend increase the probability AUD/USD will continue to rise inside this Rectangle.