By: Dima Chernovolov
CAD/CHF recently broke the 4-hour Up Channel chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the medium Initial Trend (6 bars), lower Uniformity (4 bars) and maximum Clarity (10 bars). CAD/CHF is expected to fall toward the forecast price 0.7464 – in line with the earlier downward reversal from the major resistance area shown below.
As can be seen from the weekly CAD/CHF chart below, the pair earlier reversed down from the powerful resistance area lying between the resistance level 0.7600 (which has been reversing the pair from the start of 2019) and the upper weekly Bollinger Band. The proximity of this resistance area increases the probability CAD/CHF will continue to fall toward the forecast price 0.7464.