Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to rise inside the 4-hour Up Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which reflects the slow Initial Trend (2 bars), significant Uniformity (7 bars) and strong Clarity (8 bars). EUR/USD is expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance area shown below.

As can be seen from the daily EUR/USD chart below, the price earlier broke the resistance area lying between the round resistance level 1.1000 (which previously reversed the price at the start of October), resistance trendline of the daily down channel from June and the 50% Fibonacci correction of the pervious downward impulse from September. This price area is acting as support zone after it was broken. The proximity of this support area increases the probability EUR/USD will continue to rise inside this Up Channel.