By: Dima Chernovolov
EUR/AUD recently broke the 4-hour Flag chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Flag at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), maximum Uniformity (10 bars) and significant Clarity (8 bars). EUR/AUD is expected to fall toward the forecast price 1.6343 – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily EUR/AUD, the price earlier reversed down sharply with the daily Shooting Star from the resistance area lying between the key resistance level 1.6700 (monthly high from January) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/AUD will continue to fall toward the forecast price 1.6343.