Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (1 bar), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). EUR/CHF is expected to fall further inside this Down Channel – in line with the earlier breakout of the key support level shown below.
As can be seen from the daily EUR/CHF chart below – the price earlier broke through the key support level 1.0825 (which reversed the price twice in September). This price level is acting as strong resistance after it was broken. The proximity of this resistance area and the strength of the daily downtrend increase the probability EUR/CHF will continue to fall inside this Down Channel.