Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD recently broke the 30-minute Triangle chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Triangle at the 4-bar level – which reflects the medium Initial Trend (5 bars) and lower Uniformity (2 bars). EUR/USD is expected to fall toward the forecast price 1.1021 – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily EUR/USD chart below, the price earlier reversed down from the resistance area lying between the key resistance level 1.1000 (former strong support from April and May) and the 38.2% Fibonacci correction of the previous extended downward impulse from June. The proximity of this resistance area increases the probability EUR/USD will continue to fall toward the forecast price 1.1021.