EUR/USD has recently compelled the high Quality Up Channel chart pattern identified by Autochartist on the daily charts. Autochartist rates the overall Quality of this chart pattern at the 8 bar level which reflects the following values of the individual contributing Quality indicators: maximum Initial Trend (rated at the maximum 10 bar level), significant Uniformity (7 bars) and higher Clarity (8 bars). This chart pattern continues the preceding medium-term downtrend from the May of last year. The top of this Up Channel (point C on the chart below) formed when EUR/USD reversed down from the cluster of the Fibonacci Retracements consisting of the 38,2% Fibonacci Retracement of the preceding weekly downward price impulse from the May of 2011 and the 50% Fibonacci Correction of the previous shorter-term 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 in the direction of the Forecast Price 1.2934.
The following daily EUR/USD chart shows the aforementioned technical price levels:
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