Trade of the Day: EUR/USD
By: Dima Chernovolov
EUR/USD continues to fall inside the 15-minute Down Channel chart pattern, which was earlier 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), below-average Uniformity (4 bars) and strong Clarity (9 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 below the key support level 1.0366 (the previous monthly low from May and June). This price level is acting as the strong resistance level after it was broken. The proximity of this resistance level and the clear daily downtrend increase the probability EUR/USD will continue to fall inside this Down Channel.