Trade of the Day: EUR/CHF

By: Dima Chernovolov

EUR/CHF continues to fall inside the 30-minute Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which reflects the slow Initial Trend (3 bars), above-average Uniformity (7 bars) and strong Clarity (9 bars).  EUR/CHF is expected to fall further inside this Down Channel – in line with the earlier breakout of the support area highlighted below.

As can be seen from the daily EUR/CHF chart below – the pair recently broke the support area lying between the key support level 1.0650 (low of the previous sharp impulse wave  from the start of June) and the 61.8% Fibonacci correction of the previous upward ABC correction from the middle of May. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone increases the probability EUR/CHF will continue to fall inside this hourly Down Channel.