Trade of the Day: CAD/CHF
By: Dima Chernovolov
CAD/CHF continues to fall inside the 30-minute Down Channel chart pattern which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 5-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars) and higher Clarity (6 bars). CAD/CHF expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the daily CAD/CHF chart below – the pair earlier reversed down from the resistance area lying between the resistance level 0.7440 (which also reversed the price in January), upper daily Bollinger Band, resistance trendline of the wide daily down channel from November and the 50% Fibonacci retracement of the earlier downward impulse from October. The proximity of this resistance area increases the probability CAD/CHF will continue to fall inside this Down Channel.