By: Dima Chernovolov
EUR/USD recently broke the daily Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Falling Wedge at the 8-bar level – which is the result of the strong Initial Trend (7 bars), high Clarity (9 bars) and substantial Uniformity (8 bars). EUR/USD is expected to rise toward the forecast price 1.1960 – in line with the recent 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 resistance level 1.1900 and the 38.2% Fibonacci correction of the downward impulse from the end of February. This price zone is acting as the support zone after it was broken. The proximity of this support zone increases the probability EUR/USD will continue to rise toward the forecast price 1.1960.