Trade of the Day: NZD/CHF
By: Dima Chernovolov
NZD/CHF continues to rise inside the 4-hour Up Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which reflects the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). NZD/CHF is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily NZD/CHF chart below, the bottom of this Up Channel formed when the pair reversed up from the strong support area lying between the pivotal support level 0.6200 (which has been reversing the price from August) and the lower daily Bollinger Band. The proximity of this support area increases the probability NZD/CHF will continue to rise inside this Up Channel.