Trade of the Day: NZD/CHF
By: Dima Chernovolov
NZD/CHF continues to fall inside the 4-hour Falling Wedge chart pattern which was recently identified by Autochartist. Autochartist rates the quality of daily this Falling Wedge at the 4-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and higher Clarity (6 bars). NZD/CHF is expected to fall further inside this chart pattern – in line with the earlier breakout of the key support area shown below.
As can be seen from the daily NZD/CHF below, the price earlier broke through the support area lying between the key support level 0.6710 (which has been reversing the price from the start of April) and the 50% Fibonacci correction of the upward impulse from January. This price area is acting as resistance zone after it was broken. The proximity of this resistance area increases the probability NZD/CHF will continue to fall inside this Falling Wedge.