Trade of the Day: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to fall inside 30-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (6 bars) and strong Clarity (8 bars). EUR/AUD is expected to fall further inside this Falling Wedge – in line with the earlier breakout of the key support level show below.
As can be seen from the daily EUR/AUD chart below, the price earlier broke through the major long-term support level 1.5600 (which reversed the price twice in the middle of January as can be seen below). This price level is acting as the strong resistance after it was broken. The proximity of this resistance level and strong daily downtrend increase the probability EUR/AUD will continue to fall inside this chart pattern.