Trade of the Day: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to fall inside the 4-hour Down Channel chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which reflects the above-average Initial Trend (6 bars) and strong Uniformity and Clarity (both rated at the 9 bar level). EUR/AUD is expected to fall further inside this Down Channel – in line with the earlier breakout of the support area shown below.
As can be seen from the daily EUR/AUD chart below, the price earlier broke through the support area lying between the support level 1.6190, 100-day moving average and the 61.8% Fibonacci correction of the previous upward impulse from July. This prize zone is acting as this resistance area after it was broken. The proximity of this resistance area increases the probability EUR/AUD will continue to fall inside this Down Channel.