Trade of the Day: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to rise inside the uniform 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and lower Clarity (3 bars). EUR/AUD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily EUR/AUD chart below – the price earlier reversed up from the key support area lying between the pivotal support level 1.5980 (which has been reversing the price from September) and the lower daily Bollinger Band. The proximity of this support area increases the probability EUR/AUD will continue to rise inside this Up Channel.