Trade of the Day: EUR/USD

By: Dima Chernovolov
EUR/USD continues to fall inside the clear 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which reflects the slow Initial Trend (1 bar), average Uniformity (5 bars) and higher Clarity (6 bars). EUR/USD is expected to fall further inside this Down Channel .

As can be seen from the daily EUR/USD chart below – the price earlier broke through the support zone located between the support level 1.0805 (the monthly low from March) and the support level 1.0765 (which stopped the price earlier this month). This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone and the clear daily downtrend add to the probability EUR/USD will continue to fall inside this Down Channel.