Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD recently reversed down from the top of 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 medium Initial Trend and Uniformity (5 bars) and lower Clarity (4 bars). EUR/USD expected to fall further inside this Up Channel.

As can be seen from the daily EUR/USD chart below – the downward reversal from the top of this up channel coincided with the reversal from the upper daily Bollinger Band and the previous upward pivot from August. The proximity of these resistance levels and the bearish divergence on the daily Stochastic indicator increase the probability EUR/USD will continue to fall inside this Up Channel.