Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to fall toward broke the key support level 1.0404 which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this support level at the 5-bar level – which is the result of the five previous price reversals from this price level. EUR/CHF is expected to continue to fall toward the support level 1.0404.
As can be seen from the daily EUR/CHF chart below – the price earlier reversed down from the resistance area located between the resistance level 1.0450 (former support from November), 20-day moving average and the 38.2% Fibonacci correction of the downward impulse form the start of November. The proximity of this resistance area and the strong daily downtrend increase the probability EUR/CHF will continue to fall toward the support level 1.0404.