Trade of the Day: CAD/CHF
By: Dima Chernovolov
CAD/CHF continues to fall rise inside the 4-hour Down Channel chart pattern which was previously 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 (2 bars), significant Uniformity (7 bars) and strong Clarity (9 bars). CAD/CHF is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the key support level area below.
As can be seen from the daily CAD/CHF chart below, the pair recently reversed up from the support area lying between the key support level 0.7390 (which has been reversing the price from the middle of January) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic increase the probability CAD/CHF will continue to rise inside this Down Channel.