Trade of the Day: CAD/CHF

By: Dima Chernovolov

CAD/CHF recently broke the key resistance level 0.7135 which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this resistance level at the 3-bar level – which is the result of the three previous price reversals from this price level. CAD/CHF is expected to continue to rise toward the forecast price 0.7147.

As can be seen from the daily CAD/CHF chart below – the price earlier reversed up from the major support level 0.7100 (which reversed the pair in August) intersecting with the lower daily Bollinger Band. The proximity of this support level and the clear bullish divergence on the daily Stochastic indicator increase the probability CAD/CHF will continue rise toward the forecast price 0.7147.