Trade of the Day: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to fall inside the hourly Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which is the result of the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and substantial Clarity (8 bars). EUR/AUD is expected to fall further inside this Triangle – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily EUR/AUD chart below, the top of this Triangle formed when the pair reversed down from the resistance area lying between the key resistance level 0.6300 (which has been reversing the price from October) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/AUD will continue to fall inside this Triangle.