Trade of the Day: AUD/CHF
By: Dima Chernovolov
AUD/CHF continues to rise inside the daily Down Channel chart pattern which was previously identified by Autochartist. Autochartist measures the quality of this Down Channel at the 7-bar level – which is the result of the sharp Initial Trend (9 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). AUD/CHF is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily AUD/CHF chart below, the price earlier reversed up from the key support area lying between the support level 0.6688, lower daily Bollinger Band and the 50% Fibonacci correction of the previous ABC correction from August. The proximity of this support area adds to the probability AUD/CHF will continue to rise inside this Down Channel.