Trade of the Day: NZD/CHF

By: Dima Chernovolov

NZD/CHF continues to fall inside the clear hourly Down Channel chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (4 bars), significant Uniformity (7 bars) and maximum Clarity (10 bars). NZD/CHF 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 daily NZD/CHF chart below – the pair earlier broke through the pivotal support level 0.6230 (which have been reversing the price from last October). This price level is acting as the strong resistance after it was broken. The proximity of this resistance level increases the probability NZD/CHF will continue to fall inside this Down Channel.