Trade of the Day: EUR/USD
By: Dima Chernovolov
EUR/USD continues to rise inside the 4-hour Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and strong Clarity (8 bars). EUR/USD is expected to rise further inside this Down Channel .
As can be seen from the weekly EUR/USD chart below – the price earlier reversed up from the strong support level 1.0800 (which reversed the price multiple times in 2020) and the lower weekly Bollinger Band. The proximity of this support level and the bullish divergence on the weekly Stochastic indicator increase the probability EUR/USD will continue to rise inside this Down Channel.