By: Dima Chernovolov
EUR/AUD continues to rise inside the 4-hour Rising Wedge chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this chart pattern at the 4-bar level – which reflects the slow Initial Trend (1 bar), strong Uniformity (8 bars) and medium Clarity (5 bars). EUR/AUD is expected to rise further inside this chart pattern – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily EUR/AUD chart below, the price earlier reversed up with the daily Hammer from the support area lying between the key support level 1.5900 (monthly low from July) and the lower daily Bollinger Band. The proximity of this support area increases the probability EUR/AUD will continue to rise inside this Rising Wedge.