Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues rise inside the daily Rising Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), medium Uniformity (5 bars) and above-average Clarity (6 bars). EUR/USD is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the key 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 1.2150 (former resistance from the start of December) and the 38.2% Fibonacci correction of the upward impulse from the end of November. The proximity of this support area and the clear daily uptrend increase the probability EUR/USD will continue to rise inside this Rising Wedge.