Trade of the Day: EUR/CHF

By: Dima Chernovolov

EUR/CHF continues to fall inside hourly Falling Wedge chart pattern, which was earlier identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 3-bar level – which is the result of the slow Initial Trend (1 bar) and medium Uniformity and Clarity (5 bars). EUR/CHF is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily EUR/CHF chart below, the pair recently reversed down with the daily Japanese candlesticks reversal pattern Shooting Star from the resistance area loccated between the long-term resistance level 1.08730 (which has been reversing the pair from the start of June) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability EUR/CHF will continue to fall inside Falling Wedge.