Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall after the earlier breakout of the 4-hour Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and higher Clarity (7 bars). EUR/USD is expected to fall toward the forecast price 1.1724 – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily EUR/USD chart below – the top of this Triangle formed when the price reversed down from the resistance area lying between the key resistance level 1.1900 (which reversed the two previous impulse waves) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability EUR/USD will continue to fall toward the forecast price 1.1724.