By: Dima Chernovolov
CAD/CHF continues to rise inside the well-formed hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 9-bar level – which is the result of the strong Initial Trend (10 bars), significant Uniformity (8 bars) and near-maximum Clarity (9 bars). CAD/CHF is expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance level shown below.
As can be seen from the daily CAD/CHF chart below, price earlier broke the strong resistance level 0.7800 (which reversed the price with the daily Japanese candlesticks reversal pattern Evening Star at the start of May). This price level is acting as a strong support level after it was broken. The proximity of this support level and the strength of the active daily impulse wave increase the probability CAD/CHF will continue to rise inside this Up Channel.
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