Trade of the Day: NZD/CHF

By: Dima Chernovolov

NZD/CHF continues to fall inside the daily Down Channel chart pattern which was identified recently by Autochartist. Autochartist measures the quality of this Down Channel at the 4-bar level – which reflects the slow Initial Trend (1 bra), significant Uniformity (7 bars) and average Clarity (8 bars). NZD/CHF is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily NZD/CHF chart below, the pair earlier reversed down from the resistance area lying between the strong resistance level 0.6400 (former strong support from June), upper daily Bollinger Band and the 50% Fibonacci correction of the previous sharp downward impulse from July. The proximity of this resistance area increases the probability NZD/CHF will continue to fall inside this Down Channel.