Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD continues to rise after the earlier breakout of the key resistance level 0.6865. Autochartist measures the significance of this resistance level at the 4-bar level – which is the result of the four previous price reversals for this price level. AUD/USD is expected to rise toward the forecast price 0.6934 in line with the active daily impulse wave from the end of November.

As can be seen from the daily AUD/USD chart below, the breakout of this key resistance level accelerated the active impulse wave from the end of November. This price level is acting as the strong support after it was broken. The proximity of this support level and the strength of the active impulse wave both increase the probability AUD/USD will continue to rise to rise toward the forecast price 0.6934.