By: Dima Chernovolov
EUR/AUD continues rise fall inside the daily Falling Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 8-bar level – which is the result of the strong Initial Trend (8 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). EUR/AUD is expected to rise further inside this Falling Wedge – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily EUR/AUD chart below, the price earlier reversed up from the major support area lying between the long-term support level 1.6040 (which stopped the sharp downtrend in June) and the lower daily Bollinger Band. The proximity of this support area adds to the probability EUR/AUD will continue to rise inside this Falling Wedge chart pattern.