Trade of the Day: EUR/AUD

By: Dima Chernovolov

EUR/AUD recently broke the 30-minite Inverse Head and Shoulders chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Head and Shoulders at the 6-bar level – which is the result of the strong Initial Trend (8 bars), medium Uniformity (5 bars) and lower Clarity (4 bars). EUR/AUD is expected to rise toward the forecast price 1.4760.

As can be seen from the daily EUR/AUD chart below – the pair earlier reversed up from the support area located between the major support level 1.4550 (which has been reversing the price from the middle of April) and the lower Bollinger Band. The proximity of this support area adds to the probability EUR/AUD will continue to rise toward the forecast price 1.4760.