Trade of the Day: EUR/USD

By: Dima Chernovolov

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

As can be seen from the daily EUR/USD chart below – the pair earlier broke the resistance zone located between the key resistance level 1.0100 (previous monthly high from October) and the 50% Fibonacci correction of the downward impulse from June. This price area is acting as the support zone after it was broken. The proximity of support zone increases the probability EUR/USD will continue rise inside this Up Channel.