Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF recently broke the key support level 0.9735, which was previously identified by Autochartist on the 30-minute charts. Autochartist rates the quality of this support level at the 3 bar level – which is the result of the 3 previous price reversals from this price level. NZD/CAD is expected to fall further toward the forecast price 0.9702 – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily USD/CHF chart below – the pair recently reversed down from the combined resistance area lying between the key resistance level 0.9800 (which has been reversing the price from the start of April), upper daily Bollinger Band and the 61.8% Fibonacci correction of the previous sharp downward impulse from the end of April. The proximity of this resistance area adds to the probability USD/CHF will continue to fall toward the forecast price 0.9702.