Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to rise inside the Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and near-maximum Clarity (9 bars). USD/CHF recently is expected to rise further ringside this Falling Wedge – in line with the earlier upward reversal from the support area shown below.

As can be seen from the daily USD/CHF chart below – the bottom of this Falling Wedge formed when the pair reversed up with the daily Morning Star from the support area lying between the support level 0.9625 and the lower daily Bollinger Band. The proximity of this support area adds to the probability USD/CHF will continue to rise inside the Falling Wedge.