Trade of the Day: CAD/CHF

By: Dima Chernovolov

CAD/CHF continues to rise inside the 4-hour Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), medium Clarity (5 bars) and strong Uniformity (8 bars). CAD/CHF is expected to rise further inside this Rising Wedge.

As can be seen from the daily CAD/CHF chart below – the price earlier broke above the minor resistance level 0.7470 (which reversed the price at the start of May).  This price level is acting as the support level after it was broken. The proximity of this support level and the strength of the active daily upward impulse increase the probability CAD/CHF will continue to rise inside this Rising Wedge.