Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to rise inside the daily Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which is the result of the slow Initial Trend (4 bars), lower Uniformity (3 bars) and near-maximum Clarity (8 bars). EUR/USD is expected to rise further inside this Triangle.

As can be seen from the daily EUR/USD chart below – the price earlier reversed up from the support zone lying between the key support level 1.1520  (previous monthly low from October) and the lower daily Bollinger Band. The proximity of this support zone and the clear bullish divergence on the daily Stochastic indicator increase the probability EUR/USD will continue to inside this Triangle.