Trade of the Day: CAD/CHF

By: Dima Chernovolov

CAD/CHF continues to rise after the recent breakout of the 4-hour Triangle chart pattern which was previously by Autochartist. Autochartist rates the quality of this Triangle at the 5-bar level – which reflects the slow Initial Trend (2 bars), average Uniformity (5 bars) and higher Clarity (6 bars). CAD/CHF is expected to rise toward the forecast price 0.7473– in line with the earlier upward reversal from the key support area shown below

As can be seen from the daily CAD/CHF chart below, the price earlier reversed up from the support area lying between the key support level 0.7300 (which has been repeatedly reversing the price from the start of August) and the lower daily Bollinger Band.  The proximity of this support area increases the probability CAD/CHF will continue to rise toward the forecast price 0.7473.