By: Dima Chernovolov
EUR/USD today broke the 4-hour Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 9-bar level – which is the result of the strong Initial Trend (10 bars – reflecting strong downtrend), strong Uniformity (9 bars) and medium Clarity (5 bars). EUR/USD is expected to fall toward the forecast price 1.0387.
As can be seen from the weekly EUR/USD chart below – the price earlier broke below the major long-term support level 1.0635 (which started the previous weekly uptrend in 2020). This price level is acting as strong resistance after it was broken. The strong daily downtrend and the proximity of this resistance level increase the probability EUR/USD will continue to fall toward the forecast price 1.0387.