Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD recently broke the 4-hour Up Channel chart pattern, which was previously 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 (1 bar), above-average Uniformity (6 bars) and strong Clarity (8 bars). AUD/USD is expected to fall toward the forecast price 0.6895.

As can be seen from the daily AUD/USD chart below – the pair earlier broke the support area located between the support trendline of the daily up channel from June and the 38.2% Fibonacci correction of the upward impulse from June. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone and the strong daily downtrend increase the probability AUD/USD will continue to fall toward the forecast price 0.6895.