Trade of the Day: AUD/CHF

By: Dima Chernovolov

AUD/CHF recently broke the hourly Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 7-bar level – which is the result of the medium Initial Trend (4 bars), above-average Uniformity (6 bars), and near-maximum Clarity (8 bars). With the strength of this breakout rated at the maximum, 10-bar level – AUD/CHF is expected to rise toward the forecast price 0.6179.

As can be seen from the daily AUD/CHF chart below – the pair recently reversed up with the daily Bullish Engulfing from the support area lying between the key support level 0.6070 (which reversed the pair earlier this month) and the 38.2% Fibonacci retracement of the previous upward impulse from the start of April. The proximity of this support area increases the probability AUD/CHF will continue to rise toward the forecast price 0.6179.