Trade of the Day: AUD/CHF

By: Dima Chernovolov

AUD/CHF recently broke the daily Rising Wedge chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Rising Wedge at the 9-bar level – which is the result of the strong Initial Trend (7 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). AUD/CHF is expected to fall toward the forecast price 0.6589.

As can be seen from the daily AUD/CHF chart below, the breakout of this Rising Wedge follows the earlier downward reversal from the powerful resistance area lying between the resistance level 0.6840 (monthly high from September) and the 50% Fibonacci correction of the previous downward impulse from February. The proximity of this resistance zone adds to the probability AUD/CHF will continue to fall toward the forecast price 0.6589.