Trade of the Day: AUD/USD

By: Dima Chernovolov

AUD/USD continues to fall inside the 30-minute Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (2 bars), significant Uniformity (7 bars) and strong Clarity (9 bars). AUD/USD is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily AUD/USD chart below, the top of this chart pattern formed when the pair reversed down from the resistance area lying between the key resistance level 0.6930 (which has been reversing the price from October), 61.8% Fibonacci correction of the previous downward impulse from July and the upper daily Bollinger Band. The proximity of this resistance area increases the probability AUD/USD will continue to fall inside this Down Channel.