Trade of the Day: EUR/USD
By: Dima Chernovolov
EUR/USD continues to rise inside the 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (2 bars), average Uniformity (5 bars) and maximum Clarity (10 bars). EUR/USD is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily EUR/USD chart below – the price earlier reversed up from the support area located between the support level 1.1710 (which stopped the previous short-term correction at the start of August) and the 38.2% Fibonacci retarcement of the sharp upward impulse from June. The proximity of this support area and the strength of the active daily uptrend increase the probability EUR/USD will continue to rise inside this Up Channel.