Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to rise inside the daily Up Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), significantly Uniformity and Clarity (7 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 lying between the key support level 1.1800 (which also reversed the price at the end of August), lower daily Bollinger Band and the 38.2% Fibonacci retracement of the upward impulse from July. The proximity of this support area and the clear daily uptrend increase the probability EUR/USD will continue to rise inside this Up Channel.