Daily Forex Update: EUR/AUD
By: Dima Chernovolov
Analyst, Autochartist
Autochartist has recently identified the clear Triangle chart pattern on the daily EUR/AUD charts. Autochartist rates the overall Quality of this chart pattern at the 5 bar level which reflects the following values of the individual contributing Quality indicators: low Initial Trend (rated at the 3 bar level), average Uniformity (5 bars) and near maximum Clarity (8 bars). This chart pattern continues the predominant downtrend visible on the daily and the weekly EUR/AUD charts. The top of this Triangle (point A on the chart below) formed when the pair reversed down from the strong resistance area made out of the former strong support level 1.2900 (acting as resistance now after having been broken in the December of last year) as well as the 38,2% Fibonacci Retracement of the preceding sharp daily downward price impulse from the October of 2011 (as is shown on the second chart below). The pair is expected to fall further toward the lower support trendline of this chart pattern.
The following daily EUR/AUD chart shows the aforementioned technical price levels:
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