Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to rise inside the hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the significant Initial Trend (7 bars) and medium Uniformity and Clarity (4 bars). EUR/USD is expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance level shown below

As can be seen from the daily EUR/USD chart below – the pair earlier broke above the key resistance level 1.1000 (which has been reversing the price from the middle of April). This level is acting as strong support now. The pair is currently approaching the key resistance level 1.1150 (former correction top from March) – which, if broken, would lead to further gains inside this Up Channel.