Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to rise after the earlier breakout of the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 7-bar level – which is the result of the medium Initial Trend (5 bars), lower Uniformity (4 bars) and strong Clarity (8 bars). EUR/CHF is expected to rise toward the forecast price 1.1254 – in line with the earlier upward reversal from the major support area shown below.
As can be seen from the daily EUR/CHF below, the pair earlier reversed up from the strong support area lying between the multi-month support level 1.1180 (which has been reversing the pair from the start of September) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic increase the probability EUR/CHF will continue to rise toward the forecast price 1.1254