Trade of the Day: AUD/CHF

By: Dima Chernovolov

AUD/CHF continues to fall inside 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 is the result of the medium Initial Trend (5 bars), higher Uniformity (6 bars) and near-maximum Clarity (9 bars). AUD/CHF is expected to fall further inside this Rising Wedge  – in line with the earlier downward reversal from the major resistance area shown below.

As can be seen from the weekly AUD/CHF chart below, the price earlier reversed down from the key resistance area made out of the long-term resistance level 0.6750 (former monthly top from May) and the upper weekly Bollinger Band. The proximity of this resistance area and the overbought weekly Stochastic increase the probability AUD/CHF will continue to fall inside this Rising Wedge.