By: Dima Chernovolov
EUR/USD continues to rise after the earlier breakout of the hourly Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 7-bar level – which is the result of the medium Initial Trend (5 bars), higher Uniformity (6 bars) and significant Clarity (7 bars). EUR/USD is expected to rise toward the forecast price 1.1263 – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily EUR/USD below, the pair earlier reversed up from the key support area lying between the support level 1.1200 (which has been reversing the pair from last November) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic increases the probability EUR/USD will continue to rise toward the forecast price 1.1263.