Trade of the Day: EUR/AUD

By: Dima Chernovolov

EUR/AUD recently broke the daily Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 3-bar level – which is the result of the slow Initial Trend (1 bar) and strong Uniformity (7 bars). EUR/AUD is expected to fall toward the forecast price 1.5805 – in line with the earlier breakout of the key support level shown below.

As can be seen from the daily EUR/AUD chart below – the breakout of this Triangle coincided with the breakout of the key support level 1.650 (which reversed the price in April and March). This price level is acting as strong resistance after it was broken. The proximity of this resistance level increases the probability the pair will continue to fall toward the forecast price 1.5805.