Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall after the earlier breakout of the daily Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Triangle at the 6-bar level – which is the result of the slow Initial Trend (3 bars), strong Uniformity (9 bars) and medium Clarity (5 bars). EUR/USD is expected to fall toward the forecast price 1.1925 – in line with the earlier breakout of the support area shown below.

As can be support from EUR/USD chart below, the price earlier broke the support area lying between the key support level 1.2065 (which has been reversing the price from the start of December) and the 38.2% Fibonacci correction of the previous upward impulse from November. This support zone is acting as the resistance area after it was broken. The proximity of this resistance adds to the probability EUR/USD will continue to fall toward the forecast price 1.1925.