Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF recently broke the key support level 0.9277 which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this support level at the 5-bar level – which is the result of the five previous price reversals from this price level. USD/CHF is expected to continue to fall toward the forecast price 0.9232.

As can be seen from the daily USD/CHF chart below – the price earlier reversed down from the resistance area located between the key resistance level 0.9335 (which stopped the pair in the middle of September) and the upper daily Bollinger Band. The proximity of this resistance area and the clear bearish divergence on the daily Stochastic indicator increase the probability USD/CHF will continue to fall toward the forecast price 0.9232.