Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to fall inside the hourly Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the below-average Initial Trend (4 bars), significant Uniformity (7 bars) and maximum clarity (10 bars). EUR/CHF is expected to fall further inside this Down Channel.
As can be seen from the daily EUR/CHF chart below – the pair earlier reversed broke the support area located between the support level 1.0800 (which reversed the price earlier this month) and the support trendline of the daily down channel from the start of April. This price area is acting as the resistance zone after it was broken. The proximity of this resistance zone adds to the probability EUR/CHF will continue fall inside this Down Channel.