Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to fall inside the hourly Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Triangle at the 5-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). EUR/CHF is expected to fall further inside this Triangle – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily EUR/CHF below, the price earlier reversed down from the resistance area lying between the key resistance level 1.1440 (monthly high from February) and the upper daily Bollinger Band. The proximity of this resistance area and the overbought daily Stochastic increase the probability EUR/CHF will continue to fall inside this Triangle.