Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD recently broke the hourly Falling Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of Falling Wedge at the 7-bar level – which is the result of the sharp Initial Trend (10 bars), significant Uniformity (7 bars) and maximum Clarity (10 bars). EUR/USD is expected to rise toward the forecast price 1.2187 – in line with the earlier upward reversal from the 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 1.2060 (former correction low from December), lower daily Bollinger Band and the 38.2% Fibonacci correction level of the previous upward impulse from November. The proximity of this support area adds to the probability EUR/USD will continue to rise toward the forecast price 1.2187.