Trade of the Day: EUR/USD
By: Dima Chernovolov
EUR/USD continues to rise inside the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 3-bar level – which is the result of the slow Initial Trend and Uniformity (2 bars) and above-average Clarity (6 bars). EUR/USD is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily EUR/USD chart below, the price earlier broke the resistance area lying between the key resistance level 1.2100 and the resistance trendline of the daily down channel from the start of January. This price area is acting as the strong support zone after it was broken. The proximity of this support zone and the clear daily uptrend increase the probability EUR/USD will continue to rise inside this daily Up Channel.