Trade of the Day: EUR/USD

By: Dima Chernovolov
EUR/USD recently broke the key resistance level 1.0542, which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the strong, 7-bar level – which is the result of the seven earlier price reversals from this price level. EUR/USD is expected to continue to rise toward the forecast level 1.0587.

As can be seen from the daily EUR/USD chart below – the price earlier reversed up from key support level 1.0365 (which stopped the previous sharp downward impulse wave in the middle of March), standing below the lower daily Bollinger Band. The proximity of this support level adds to the probability EUR/USD will continue to rise toward the forecast level 1.0587.