Trade of the Day: AUD/USD
By: Dima Chernovolov
AUD/USD continues to fall inside the 4-hour Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity and Clarity (7 bars). AUD/USD expected to fall further inside this Up Channel.
As can be seen from the daily AUD/USD chart below – the pair earlier reversed down from the resistance area lying at the intersection of resistance level 0.7275 (which has been reversing the pair from the end of December), upper daily Bollinger band and the 50% Fibonacci correction of the downward impulse from October. The proximity of this resistance area increases the probability AUD/USD will continue to fall inside this Up Channel.