Trade of the Day: CAD/CHF
By: Dima Chernovolov
CAD/CHF continues to rise inside the hourly Rising Wedge chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and higher Clarity (7 bars). CAD/CHF is expected to rise further inside this chart pattern – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily CAD/CHF chart below, the price recently broke the resistance area lying between the resistance level 0.7540 and the 61.8% Fibonacci correction of the sharp downward impulse from April. This price zone is acting as a strong support area after it was broken. The proximity of this support area adds to the probability CAD/CHF will continue to rise inside this Rising Wedge.
