Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to fall inside the 4-hour Descending Triangle chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 7-bar level – which is the result of the slow Initial Trend (3 bars), and strong Uniformity and Clarity (8 bars). EUR/CHF is expected to fall further inside this Descending Triangle.
As can be seen from the weekly EUR/CHF chart below – the price earlier broke the major long-term support level 1.050 (which stopped the sharp weekly downtrend in the middle of 2020). This price level is acting as the powerful resistance level after it was broken. The proximity of this resistance level and the clear weekly downtrend increase the probability EUR/CHF will continue to fall inside this Descending Triangle.