Trade of the Day: AUD/CHF

By: Dima Chernovolov

AUD/CHF recently broke the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 7-bar level – which reflects the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and near-maximum Clarity (9 bars). AUD/CHF is expected to fall toward the forecast price 0.6572 – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily AUD/CHF chart below – the price earlier reversed down from the resistance area lying between the key resistance level 0.6700 (former monthly support from November and December of 2019) and the upper daily Bollinger band. The proximity of this resistance area increases the probability AUD/CHF will continue to fall toward the forecast price 0.6572.