Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD recently broke the 4-hour Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the slower Initial Trend (2 bars), strong Uniformity (8 bars) and below-average Clarity (4 bars). EUR/USD is expected to fall toward the forecast price 1.0537.

As can be seen from the daily EUR/USD chart below – the pair earlier reversed down from the resistance area located between the key resistance level 1.0700 (which reversed the price with the daily Bearish Engulfing in the middle of December) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability EUR/USD will continue to fall toward the forecast price 1.0537.