EUR/AUD continues to fall inside the daily Down Channel chart pattern, which was previously identified by Autochartist. Autochartist measures the quality of this Down Channel at the 4 bar level – which is the result of the slow Initial Trend (2 bars), medium Uniformity (5 bars) and above-average Clarity (6 bars). EUR/AUD is expected to continue to fall inside this Down Channel – in line with the strong downward trend visible on the daily charts.
As can be seen from the daily EUR/AUD chart below, the price earlier reversed down from the resistance zone lying between the resistance level 1.4280 (which also reversed the price in January), upper daily Bollinger® Band and the 61.8% Fibonacci correction of the sharp downward impulse from December. The proximity of this resistance zone increases the probability EUR/AUD will continue to fall inside this Down Channel