Trade of the Day: NZD/CHF
By: Dima Chernovolov
NZD/CHF continues to rise inside the 30-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slower Initial Trend (2 bars), below-average Uniformity (4 bars) and strong Clarity (8 bars). NZD/CHF is expected to rise further inside this Channel – in line with the earlier upward reversal from the key support level shown below.
As can be seen from the daily NZD/CHF chart below, the price earlier reversed up with the daily Japanese candlesticks reversal pattern Bullish Engulfing from the support area lying between the key support level 0.6550 (which reversed the price at the start of January), lower daily Bollinger Band and the 61.8% Fibonacci correction of the previous upward impulse from last September. The proximity of this support area increases the probability NZD/CHF will continue to rise inside this Channel