Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD recently broke the well-formed daily Up Channel chart pattern which was identified earlier by Autochartist. Autochartist rates the quality of this Up Channel at the 9-bar level – which is the result of the sharp Initial Trend (10 bars), strong Uniformity and Clarity (8 bars). AUD/USD is expected to fall toward the forecast price 0.6842.

As can be seen from the daily AUD/USD, the price earlier broke below the support area lying between the support level 0.6925 (which reversed the price sharply earlier this month) and the 61.8% Fibonacci correction of the previous upward impulse from June. This price area is acting as strong resistance zone now. The proximity of this resistance zone adds to the probability AUD/USD will continue to fall toward the forecast price 0.6842.