Trade of the Day: AUD/USD
By: Dima Chernovolov
AUD/USD continues to fall inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), average Uniformity (5 bars) and higher Clarity (7 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 below, the price earlier reversed down from the resistance area lying between the key resistance level 0.7100 (former support from February), upward trendline from January and the 50% Fibonacci correction of the previous downward impulse from February. The proximity of this resistance area increases the probability AUD/USD will continue fall inside this Down Channel.
