Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD recently broke 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) and significant Uniformity and Clarity (7 bars). EUR/USD is expected to fall toward the forecast price 1.1810 – in line with the earlier breakout of the support area shown below.

As can be seen from the daily EUR/USD chart below – the price earlier broke the support area located between the support powerful level 1.1965 (former monthly low from February) and the 50% Fibonacci correction of the previous sharp upward impulse from last November. This price area is acting as the strong resistance zone after it was broken. The proximity of this resistance area increases the probability EUR/USD will continue to fall toward the forecast price 1.1810.