Trade of the Day: EUR/USD
By: Dima Chernovolov
EUR/USD continues to fall inside the clear daily Descending Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Descending Triangle at the 6-bar level – which is the result of the lower Initial Trend (3 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). EUR/USD is expected to fall further inside this Descending Triangle – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily EUR/USD below, the price earlier reversed down from the resistance area lying between the key resistance level 1.3000, upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward impulse from March. The proximity of this resistance area adds to the probability EUR/USD will continue to fall inside this Descending Triangle.