By: Dima Chernovolov
EUR/AUD continues to fall inside the hourly Descending Triangle chart pattern which was identified previously by Autochartist. Autochartist measures the quality of this Descending Triangle at the 5-bar level – which reflects the slow Initial Trend (1 bar), significant Uniformity and Clarity (7 bars). EUR/AUD is expected to fall further inside this Descending Triangle – in line with the earlier downward reversal from the powerful resistance area highlighted below.
As can be seen from the daily EUR/AUD chart below, the price earlier reversed down from the powerful resistance area lying between the long-term resistance level 1.6680 (which has been reversing the price from January) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/AUD will continue to fall inside this Descending Triangle.