Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the hourly Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 3-bar level – which is the result of the slow Initial Trend (2 bars), lower Clarity (3 bars) and below-average Uniformity (3 bars). EUR/USD is expected to fall further inside this Falling Wedge.

As can be seen from the daily EUR/USD chart below – the pair earlier reversed down from the resistance area located between the round resistance level 1.200 (which reversed the price in May) and the 50% Fibonacci correction of the downward impulse from the middle of June. The proximity of this resistance area adds to the probability EUR/USD will continue to fall inside this Falling Wedge.