Trade of the Day: AUD/USD
By: Dima Chernovolov
AUD/USD recently broke the key support level 0.7495, which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 4-bar level – which is the result of the four previous price reversals from this price level. AUD/USD is expected to continue to fall toward the forecast price 0.7463.
As can be seen from the daily AUD/USD chart below – the price earlier reversed down from the key resistance level 0.7550 (previous multi-month high from October), intersecting with the upper daily Bollinger Band. The proximity of this resistance level and overbought reading on the daily Stochastic indicator increase the probability AUD/USD will continue to fall toward the forecast price 0.7463.