Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall toward the key support level 1.0883, which was recently identified by Autochartist. Autochartist rates the quality of this support level at the 3-bar level – which is the result of three earlier reversals from this price level. EUR/USD is expected to continue to fall toward the support level 1.0883.

As can be seen from the daily EUR/USD chart below – the pair earlier reversed down from the major resistance area located between the key resistance level 1.1000 (which stopped the previous sharp uptrend at the start of February) and the upper daily Bollinger Band. The proximity of this resistance area and the overbought daily Stochastic increase the probability EUR/USD will continue to fall toward the support level 1.0883.