Daily Forex Update: USD/CHF

By: Dima Chernovolov

USD/CHF continues to decline inside the Falling Wedge chart pattern which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the quality of this Falling Wedge at the 5- bar level – which reflects the slow Initial Trend (3 bars), below-average Uniformity (4 bars) and significant Clarity (8 bars). This Falling Wedge continues the active downward impulse from the powerful resistance zone shown below.

As can be seen from the daily USD/CHF chart below, the price earlier reversed down with the daily Evening Star from the resistance zone lying between the key resistance 0.9750 (which has been reversing the pair form the middle of June), upper daily Bollinger Band and the 50% Fibonacci correction of the sharp downward impulse from May. The proximity of this resistance zone increases the probability USD/CHF will continue to decline inside this Falling Wedge.

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