Trade of the Day: NZD/CHF

By: Dima Chernovolov

NZD/CHF continues to fall inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which reflects the slow Initial Trend (2 bars), significant Uniformity (7 bars) and strong Clarity (8 bars). NZD/CHF expected to fall further inside this Down Channel – in line with the earlier breakout of the key support level shown below.

As can be seen from the daily NZD/CHF chart below – the pair earlier broke sharply through the major long-term support level 0.6160 (which stopped the sharp downtrend at the end of August, as can be seen from the daily NZD/CHF chart below). This price level is acting as the strong resistance after it was broken. The proximity of this resistance level adds to the probability NZD/CHF will continue to fall inside this Down Channel.