Trade of the Day: EUR/AUD
By: Dima Chernovolov
EUR/AUD continues to rise after the latest breakout of the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 8-bar level – which is the result of the slow Initial Trend (4 bars), higher Uniformity (6 bars) and near-maximum Clarity (9 bars). Autochartist rates the strength of this breakout at the maximum 10 bar level – which adds to the probability EUR/AUD will continue to rise toward the forecast price 1.5957.
As can be seen from the daily EUR/AUD below, the pair earlier reversed up from the strong support area lying between the key support level 1.5740 (which has been reversing the pair from January) and the lower daily Bollinger Band. The proximity of this support area increases the probability EUR/AUD will continue to rise toward the forecast price 1.5957.