Trade of the Day: EUR/AUD

By: Dima Chernovolov

EUR/AUD continues to fall inside the hourly Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the medium Initial Trend (5 bars), lower Uniformity (3 bars) and strong Clarity (8 bars). EUR/AUD is expected to fall inside this Down Channel.

As can be seen from the daily EUR/AUD chart below – the pair earlier broke the support area located between the support level 1.5935 (which also reversed the price in July) and the 38.2% Fibonacci correction of the upward impulse from the start of July. This price area is acting as the resistance area after it was broken. The proximity of this resistance area increases the probability EUR/AUD will continue fall inside this Down Channel.