Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the 4-hour Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the below-average Initial Trend (3 bars), higher Uniformity (6 bars), and strong Clarity (8 bars). EUR/USD is expected to fall further inside this Falling Wedge .

As can be seen from the daily EUR/USD chart below – the price recently broke below the strong support level 1.1125 (low of wave (B) from February). This level is currently acting as the resistnace after it was broken. The proximity of this resistnace level and the clear daily downtrend add to the probability EUR/USD will continue to fall inside this chart pattern.