Trade of the Day: EUR/USD
By: Dima Chernovolov
EUR/USD continues to rise inside the multi-month Rising Wedge chart pattern, which was recently identified by Autochartist on the daily charts. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and significant Clarity (7 bars). EUR/USD is expected to rise further inside this Rising Wedge – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily EUR/USD chart below, the price earlier broke resistance area lying between the resistance level 1.1825 (high of the previous Evening Star) and the 50% Fibonacci correction of the previous downward correction from the end of August. This price area is acting as the strong support zone after it was broken. The clear daily uptrend and the proximity of this support area increase the probability EUR/USD will continue to rise inside this Rising Wedge.