Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the 30-minute Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the below-average Initial Trend and Uniformity (4 bars), and near-maximum Uniformity (9 bars). EUR/USD is expected to fall further inside this Down Channel.

As can be seen from the daily EUR/USD chart below – the pair earlier reversed down with the daily Shooting Star from the resistance area located between the key resistance level 1.1450, upper daily Bollinger Band, resistance trendline of the daily up channel from November and the 50% Fibonacci correction of the downward impulse from October. The proximity of this resistance zone and the clear daily downtrend increase the probability EUR/USD will continue fall inside this Down Channel.