Trade of the Day: EUR/CHF

By: Dima Chernovolov

EUR/CHF continues to fall inside the 30-minute Up Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and strong Clarity (9 bars). EUR/CHF is expected to continue to fall inside this Up Channel.

As can be seen from the daily EUR/CHF chart below – the pair earlier reversed down from the resistance zone lying between the key resistance level 1.0835 (previous reversal high), upper daily Bollinger band and the 50% Fibonacci correction of the downward impulse from July.  The proximity of this resistance area increases the probability EUR/CHF will continue to fall inside this Up Channel.