Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to fall inside the hourly Falling Wedge chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), significant Uniformity (7 bars) and above-average Uniformity (6 bars). EUR/CHF is expected to fall further inside this Falling Wedge.
As can be seen from the daily EUR/CHF chart below – the pair earlier revered down with the daily Evening Star from the resistance area located between the key resistance level 1.0500, upper daily Bollinger Band and the 38.2% Fibonacci correction of the downward impulse from the middle of October. The proximity of this resistance zone and the clear daily downtrend increase the probability EUR/CHF will continue fall inside this Falling Wedge.