By: Dima Chernovolov
EUR/CHF continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend (2 bars), medium Uniformity (5 bars) and higher Clarity (6 bars). EUR/CHF is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the key support level area below.
As can be seen from the daily EUR/CHF chart below, the pair recently reversed up from the support area lying between the powerful support level 1.1160 (which has been reversing the price from the middle of May) and the lower daily Bollinger Band. The proximity of this support area and the oversold weekly Stochastic increase the probability EUR/CHF will continue to rise inside this Down Channel.