Trade of the Day: CAD/CHF

By: Dima Chernovolov

CAD/CHF recently broke the key resistance level 0.6876, which was previously identified by Autochartist. Autochartist rates the significance of this resistance level at the 5-bar level – which is the result of the result of the three earlier reversals from this price level. CAD/CHF is expected to rise toward the forecast price 0.6900.

As can be seen from the weekly CAD/CHF chart below – the pair earlier reversed up from the powerful support area located between the long-term support level 0.6840 (which has been reversing the price from the end of May) standing near the lower weekly Bollinger Band. The proximity of this support area and the oversold weekly Stochastic increase the probability CAD/CHF will continue to rise toward the forecast price 0.6900.