Trade of the Day: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to fall inside the hourly Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the medium Initial Trend (5 bars), lower Uniformity (3 bars) and average Clarity (5 bars). EUR/AUD is expected to fall further inside this Down Channel in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily EUR/AUD chart below, the price earlier reversed down from the resistance area located between the powerful resistance level 0.6500 (former support from May, which has been repeatedly reversing the price from June) and the upper daily Bollinger Band. The proximity of this resistance zone increases the probability EUR/AUD will continue to fall inside this Down Channel.