Trade of the Day: EUR/CHF

By: Dima Chernovolov

EUR/CHF continues to fall inside the 15-minute Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (1 bar), average Uniformity (5 bars) and maximum Clarity (10 bars). EUR/CHF is expected to fall further inside this chart pattern – in line with the recent downward reversal from the resistance zone shown below.

As can be seen from the daily EUR/CHF chart below – the pair recently reversed down from the resistance area zone located between the pivotal resistance level 1.065 (which also reversed the pair at the start of March), upper daily Bollinger Band and the 61.8% Fibonacci retracement of the earlier downward impulse from last month. The proximity of this resistance area and the strength of the active daily downtrend increase the probability EUR/CHF will continue to fall inside this Falling Wedge.