Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to rise inside the uniform Up Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 4-bar level – which reflects the slow Initial Trend (2 bars), strong Uniformity (8 bars) and lower Clarity (3 bars). EUR/CHF is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.
As can be seen from the daily EUR/CHF chart below – the price earlier broke above the resistance area lying between the resistance level 1,0762 (top of the previous minor correction from last month) and the 50% Fibonacci retracement of the earlier sharp downward correction from the start of June. This price area is acting as the support zone after it was broken. The proximity of this support zone adds to the probability EUR/CHF will continue to rise inside this Up Channel.