Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the significant Initial Trend (7 bars), above-average Clarity (6 bars) and near-maximum Uniformity (9 bars). AUD/USD is expected to fall further inside this Down Channel.

As can be seen from the daily AUD/USD chart below – the pair earlier broke the support area located between the key support level 0.7530 (monthly low from March) and the 50% Fibonacci correction of the upward impulse from November. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area increases the probability AUD/USD will continue to fall inside this Down Channel.