By: Dima Chernovolov
EUR/AUD continues to rise inside the daily Up Channel chart pattern which was identified earlier by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). EUR/AUD is expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance level shown below.
As can be seen from the daily EUR/AUD, the price earlier broke sharply above the key resistance level 1.6420 (monthly high from June). This price level is acting as strong support after it was broken. The proximity of this support level increases the probability EUR/AUD will continue to rise inside this Up Channel.