Trade of the Day: EUR/USD

By: Dima Chernovolov

EUR/USD continues to fall inside the hourly Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the below-average Initial Trend (4 bars), maximum Uniformity (10 bars) and significant Clarity (7 bars). EUR/USD expected to fall further inside this Down Channel – in line with the earlier of the key support level shown below.

As can be seen from the daily EUR/USD chart below – the price earlier broke sharply through the key support level 1.1000 (which has been reversing the price from November). This price level is acting as the strong resistance level after it was broken. The proximity of this resistance level increases the probability EUR/USD will continue to fall inside this hourly Down Channel.