Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD recently reversed up from the bottom of the 4-hour Down Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Descending Down Channel at the 7-bar level – which reflects the sharp Initial Trend (10 bars), low Uniformity (2 bars) and strong Clarity (8 bars). AUD/USD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the daily AUD/USD chart below, the pair earlier reversed up from the support area lying between the key support level 0.6690 (which has been reversing the price from August), support trendline of the wide down channel from January and the lower daily Bollinger Band. The proximity of this support area increases the probability AUD/USD will continue to rise inside this Down Channel.