Trade of the Day: AUD/CHF
By: Dima Chernovolov
AUD/CHF continues to rise inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 8-bar level – which is the result of the strong Initial Trend (10 bars), lower Uniformity (3 bars) and near-maximum Clarity (9 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 sharply with the daily Hammer from the support area lying between the key support level 0.6515 (which reversed the price twice in August) and the lower daily Bollinger Band. The proximity of this support area adds to the probability AUD/CHF will continue to rise inside this Down Channel.