Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to rise after the earlier breakout of the key resistance level 0.9587 which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this resistance level at the 6-bar level – which is the result of the six previous reversals from this price level. USD/CHF expected to rise further to the forecast price 0.9726 – in line with the earlier upward reversal from the long-term support area highlighted below.

As can be seen from the weekly USD/CHF chart below – the breakout of this key resistance level continues the earlier sharp daily upward impulse wave which started earlier from the long-term support area located between the powerful support level 0.9200 (which stopped the weekly downtrend at the start of 2018) and the lower weekly Bollinger Band. This price area is acting as the strong resistance zone after it was broken. The proximity of this support area increases the probability USD/CHF will continue to rise toward the forecast price 0.9726.