Trade of the Day: EUR/AUD

By: Dima Chernovolov

EUR/AUD continues to fall inside the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Triangle at the 7-bar level – which is the result of the slow Initial Trend (3 bars), strong Uniformity and Clarity (9 bars). EUR/AUD is expected to fall further inside this Triangle.

As can be seen from the daily EUR/AUD chart below – the price earlier reversed down from the resistance zone lying between the resistance level 1.56100 (former support from January), and the 50% Fibonacci correction of the downward impulse from January. The proximity of this resistance area adds to the probability EUR/AUD will continue to fall inside this Triangle.