Trade of the Day: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to rise inside the 15-minute Up Channel chart pattern, which was previously identified by Autochartist. Autochartist measures the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and strong Clarity (8 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 support area set between the long-term support level 1.6160 (which has been reversing the pair from February) and the lower daily Bollinger Band. The oversold reading on the daily Stochastic and the proximity of this support area increase the probability EUR/AUD will continue to rise inside this Up Channel.