By: Dima Chernovolov
EUR/CHF continues to fall inside the clear hourly Down Channel chart pattern which was identified earlier identified by Autochartist. Autochartist measures the quality of this Down Channel at the 8-bar level – which is the result of the strong Initial Trend (10 bars), medium Uniformity (5 bars) and strong Clarity (8 bars). EUR/CHF is expected to fall further inside this Down Channel – in line with the earlier breakout of the key support level shown below.
As can be seen from the weekly EUR/CHF chart below, the price recently broke the key support level 1.1060 (which stopped the earlier sharp downward impulse in the middle of June) – which was preceded by the downward reversal from the 200-week moving average. The strength of the active daily downtrend adds to the probability EUR/CHF will continue to fall inside this hourly Down Channel.