Trade of the Day: EUR/CHF
By: Dima Chernovolov
EUR/CHF continues to rise inside the daily Up Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the sharp Initial Trend (10 bars) and strong Uniformity and Clarity (6 bars). EUR/CHF is expected to rise further inside Up Channel – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily EUR/CHF chart below, the price earlier reversed up with the daily Morning Star from the support area lying between the support level 1.0875 (which also earlier reversed the price in October), and the lower daily Bollinger Band. The proximity of this support zone increases the probability EUR/CHF will continue to rise inside this Up Channel.