Trade of the Day: CAD/CHF

By: Dima Chernovolov

CAD/CHF continues to fall inside the hourly Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (8 bars) and strong Clarity (9 bars). CAD/CHF is expected to fall further inside this Down Channel.

As can be seen from the daily CAD/CHF chart below – the price earlier reversed down from the resistance area lying between the round resistance level 0.7400, upper daily Bollinger Band, resistance trendline from August and the 50% Fibonacci correction of the downward correction from October. The proximity of this resistance area adds to the probability CAD/CHF will continue to fall inside this Down Channel.