Trade of the Day: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to rise inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Down Channel chart at the 6-bar level – which is the result of the strong Initial Trend (8 bars), average Uniformity (5 bars) and higher Clarity (6 bars). EUR/AUD is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the major support area show below.
As can be seen from the weekly EUR/AUD chart below – the price earlier reversed up from the powerful support area located between the long-term support level 1.5350 (which has been reversing the price from the start of 2018) and the lower weekly Bollinger Band. The proximity of this support area, oversold weekly Stochastic increase the probability EUR/AUD will continue to rise inside this 4-hour Down Channel.