Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD continues to fall inside the hourly Down Channel chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which reflects the slow Initial Trend (4 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). AUD/USD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily AUD/USD chart below, the price earlier reversed down from the resistance area lying between the resistance level 0.6890 (former support from July), upper daily Bollinger Band, 100-day moving average and the 50% Fibonacci retracement of the previous sharp downward impulse from July. The proximity of this resistance area increases the probability AUD/USD will continue to fall inside this Down Channel.