Trade of the Day: CAD/CHF

By: Dima Chernovolov

CAD/CHF continues to fall inside the hourly Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 8-bar level – which is the result of the strong Initial Trend (10 bars), significant Uniformity (9 bars) and above-average Clarity (6 bars). CAD/CHF is expected to fall further inside this Falling Wedge.

As can be seen from the daily CAD/CHF chart below – the pair earlier reversed down from the resistance area located between the resistance level 0.7275 and the 50% Fibonacci correction of the downward impulse from September. The proximity of this resistance area and the clear daily downtrend increase the probability CAD/CHF will continue to fall inside this Falling Wedge.