By: Dima Chernovolov
EUR/USD continues to fall sharply in the direction of the key support level of the type approach 1.1684, which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the significance of this support level at the 4-bar level – which is the result of the 4 previous price reversals from this price level. EUR/USD is expected to fall further toward this support level – 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 price earlier reversed down from the resistance area located between the key resistance level 1.1860 (which reversed the price multiple times in September) and the upper daily Bollinger band. The proximity of this resistance area adds to the probability EUR/USD will continue to fall toward the support level 1.1684.