By: Dima Chernovolov
EUR/CHF continues to rise sharply after the recent breakout of the 30-minute Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Down Channel at the 7-bar level – which is the result of the sharp Initial Trend (10 bats),below-average Uniformity (4 bars) and above-average Clarity (6 bars). EUR/CHF is expected to rise toward the forecast price 1.1423 – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily EUR/CHF below, the price earlier reversed up from the support area lying between the key support level 1.1350 (which also reversed the price with the daily Morning Star in April), 200-day moving average, and the 38.2% Fibonacci correction of the previous upward impulse from March. The proximity of this support area increases the probability EUR/CHF will continue to rise toward the forecast price 1.1423.