By: Dima Chernovolov
AUD/CHF continues to fall inside the hourly Rectangle chart pattern which was identified previously by Autochartist. Autochartist measures the quality of this Rectangle at the 6-bar level – which is the result of the medium Initial Trend (6 bars), lower Uniformity (2 bars) and strong Clarity (8 bars). AUD/CHF is expected to fall further inside this Rectangle – in line with the earlier downward reversal from the key resistance level shown below.
As can be seen from the daily AUD/CHF chart below, the price earlier reversed down sharply from the key resistance level 0.6650 (former major support which stopped the sharp downward trend the start of January). The proximity of this resistance level and the strength of the active daily downtrend both increase the probability AUD/CHF will continue to fall inside this Rectangle.