Trade of the Day: EUR/CHF

By: Dima Chernovolov

EUR/CHF continues to fall in the direction of the key support level 1.0699 which was previously identified by Autochartist on the daily charts. Autochartist rates the Significance of this support level at the 6-bar level – which is the result of the six previous price reversals from this price level. EUR/CHF is expected to continue to fall toward the key support 1.0699.

As can be seen from the daily EUR/CHF chart below – the pair earlier broke the support area located between the key support level 1.0735 (previous monthly low from December and January) and the support level 1.0720 (which reversed the pair at the start of August). This price zone is acting as the resistance area after it was broken. The proximity of this resistance area adds to the probability EUR/CHF will continue to fall toward the key support 1.0699.