Trade of the Day: EUR/AUD

By: Dima Chernovolov

EUR/AUD recently broke the 4-hour Triangle chart pattern, which was earlier identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and strong Clarity (9 bars). EUR/AUD is expected to rise toward the forecast price 1.6289 in line with the earlier upward reversal from powerful support area highlighted below.

As can be seen from the daily EUR/AUD chart below, the bottom of this Triangle formed when the pair reversed up from the support area located between the long-term support level 1.6160 (which has been reversing the price from June) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily Stochastic indicator increase the probability EUR/AUD will continue to rise toward the forecast price 1.6289.