Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to rise inside the daily Down Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 8-bar level – which reflects the strong Initial Trend (10 bars), below-average Uniformity (4 bars) and significant Clarity (7 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 support area located between the round support level 1.000, lower weekly Bollinger Band and the support trendline of the weekly down channel from the start of 2021. The proximity of this support area and the bullish divergence on the weekly Stochastic increase the probability EUR/USD will continue to rise inside this Down Channel.