Trade of the Day: EUR/AUD

By: Dima Chernovolov

EUR/AUD continues to fall inside the 4-hour Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which is the result of the slow Initial Trend (2 bars) and significant Uniformity and Clarity (7 bars). EUR/AUD is expected to fall further inside this Triangle – in line with the earlier downward reversal from the resistance zone shown below.

As can be seen from the daily EUR/AUD chart below, the price earlier reversed down from the resistance zone located between the multi-month resistance level 1.6550 (former strong support from April and May) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability EUR/AUD will continue to fall inside this Triangle.