Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to rise inside the daily Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the above-average Initial Trend (6 bars), medium Uniformity (5 bars) and strong Clarity (8 bars). USD/CHF is expected to rise further inside this Triangle– in line with the earlier upward reversal form the support area shown below.
As can be seen from the daily USD/CHF chart below – the pair earlier reversed up from the support area lying between the key support level 0.9650 (which also revered the pair at the start of May), lower daily Bollinger Band and the 50% Fibonacci correction of the previous upward impulse from the start of March. The proximity of this support zone adds to the probability USD/CHF will continue to rise inside this Triangle.