Trade of the Day: NZD/CHF

By: Dima Chernovolov

NZD/CHF continues to fall inside the daily Down Channel chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Down Channel at the 7-bar level – which is the result of the slow Initial Trend (3 bars) and strong Uniformity and Clarity (9 bars). NZD/CHF is expected to fall further inside this Down Channel.

As can be seen from the daily NZD/CHF chart below – the pair earlier broke the major support level 0.5910 (which has been reversing the pair from the middle of 2020). This price level is acting as the strong resistance level after it was broken. The proximity of this resistance level and the weekly downtrend increase the probability NZD/CHF will continue to fall inside this Down Channel.