By: Dima Chernovolov
AUD/CHF recently broke the 4-hour Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Up Channel at the 9-bar level – which is the result of the sharp Initial Trend (10 bars), below-average Uniformity (4 bars) and near-maximum Clarity (9 bars). AUD/CHF is expected to fall toward the forecast price 0.7142 – in line with the earlier downward reversal from the major resistance area shown below.
As can be seen from the daily AUD/CHF below, the price earlier reversed down from the powerful resistance area lying between the multi-month resistance level 0.7250 (monthly high from February) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability AUD/CHF will continue to fall toward the forecast price 0.7142.