Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the daily Flag chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Flag at the 7-bar level – which is the result of the strong Initial Trend (8 bars), medium Uniformity (5 bars) and stronger Clarity (8 bars). EUR/USD is expected to fall further inside this Flag.

As can be seen from the daily EUR/USD chart below – the pair earlier broke through the parity once again – continuing the prevailing downtrend that can be seen on the daily and the weekly charts.  This price level is acting as the resistance now. The proximity of resistance level and the overriding daily downtrend increase the probability EUR/USD will continue to fall inside Flag.