Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the 15-minute Down Channel chart pattern, which was previously identified by Autochartist. Autochartist measures the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar) and significant Uniformity and Clarity (7 bars). EUR/USD is expected to fall further inside this Down Channel.

As can be seen from the daily EUR/USD chart below – the pair earlier broke the support area located between the support level 1.0100 (former strong support from June) and the 61.8% Fibonacci correction of the downward impulse from the start of August. This price area is acting as the resistance area after it was broken. The proximity of this resistance area and the strong daily downtrend increase the probability EUR/USD will continue to fall inside this Down Channel.