By: Dima Chernovolov
CAD/CHF recently broke the daily Down Channel chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the sharp Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). CAD/CHF is expected to rise toward the forecast price 0.7413 – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily CAD/CHF chart below, the pair recently reversed up from the support area lying between the powerful support level 0.7380 (which has been reversing the price from January) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily Stochastic and RSI increases the probability CAD/CHF will continue to rise toward the forecast price 0.7413.