Trade of the Day: EUR/AUD

By: Dima Chernovolov

EUR/AUD continues to fall inside the daily Falling Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (5 bars) and strong Clarity (8 bars). EUR/AUD is expected to fall further inside this Falling Wedge.

As can be seen from the following chart – Autochartist also earlier identified the key support level 1.6135 of the type approach on the 4-hour EUR/AUD charts. Autochartist rates the significance of this price level at the 5-bar level which reflects the 5 previous price reversals from this level. Two different time frame and different type chart patterns increase the likelihood of further losses for this currency pair.