Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall after the pair broke the hourly Descending Triangle chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Descending Triangle at the 4-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and lower Clarity (3 bars). EUR/USD is expected to fall toward the forecast price 1.2112 – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the weekly EUR/USD chart below, the price earlier reversed down with the weekly Shooting Star from the key resistance area lying between the major resistance level 1,2400 (which reversed the price multiple times at the start of 2018) and the upper weekly Bollinger Band. The proximity of this resistance area increases the probability EUR/USD will continue to fall toward the forecast price 1.2112.