By: Dima Chernovolov
NZD/CHF continues to fall inside the clear 4-hour Descending Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Descending Triangle at the 6-bar level – which is the result of the above-average Initial Trend and Uniformity (6 bars) and higher Clarity (7 bars). NZD/CHF is expected to fall further inside this chart pattern – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily NZD/CHF below, the price earlier reversed down from the resistance area lying between the resistance level 0.6810 (which reversed the price in April), upper daily Bollinger Band and the 50% Fibonacci correction of the previous downward impulse from March. The proximity of this resistance area increases the probability NZD/CHF will continue to fall inside this Descending Triangle.