Trade of the Day: CAD/CHF

By: Dima Chernovolov

CAD/CHF continues to rise inside the 30-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity (7 bars) and strong Clarity (9 bars). CAD/CHF is expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance level shown below.

As can be seen from the weekly CAD/CHF chart below – the price earlier broke the key multi-month resistance level 0.7200 (which reversed the price sharply in the middle of 2020). This price level is acting as the strong support level after it was broken. The proximity of this support level adds to the probability CAD/CHF will continue to rise inside this 30-minute Up Channel.