Trade of the Day: CAD/CHF
By: Dima Chernovolov
CAD/CHF continues to rise inside the clear 4-hour Up Channel which was recently identified by Autochartist. Autochartist rates the quality of daily this Up Channel at the 7-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity (8 bars) and near-maximum Clarity (9 bars). CAD/CHF is expected to rise further inside this Up Channel – in line with the earlier breakout of the key resistance area shown below.
As can be seen from the daily CAD/CHF below, the price earlier broke through the resistance area lying between the key resistance level 0.7500, resistance trendline of the daily down channel from February and the 50% Fibonacci correction of the earlier downward impulse from March. This price zone is acting as strong support zone after it was broken. The proximity of this support zone increases the probability CAD/CHF will continue to rise inside this 4-hour Up Channel.
