EUR/USD has recently completed the Down Channel chart pattern identified by Autochartist on the daily charts. Autochartist rates the Quality of this chart pattern at the 5 bar level as a result of the strong Initial Trend (7 bars), average Uniformity (5 bars) and slightly lower Clarity (4 bars). This chart pattern is continuing the sharp daily downward movement which started when the previous longer-term uptrend reversed from the resistance area close to the major round price level 1.5000 (as is shown on the second chart below). The strong Initial Trend reading reflects the sharpness of the preceding downward impulse from 1.5000. The price has recently reversed strongly (at point B) from the top of the price range the pair has been trading in for the last few months (1.4500), leading to a steep decline eventually breaking through the lower boundary of the aforementioned price range at 1.4000 (points A and D of this Down Channel formed at this level). The pair is expected to fall further in the direction of the Forecast Area located between price levels 1.326 and 1.3492. The last closing price stands near the 61.8% Fibonacci Retracement of the previous daily upward impulse at 1.3650, which should be broken for the down movement to continue.
The following daily EUR/USD chart shows the technical price levels mentioned above:
For further information on this and other Autochartist products visit www.autochartist.com