Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to rise inside the 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 6-bar level – which reflects the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars).  USD/CHF is expected to rise further inside this Down Channel – 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 Down Channel formed when the price reversed up from the support area lying between the key support level 0.9380 (which has been reversing the price from March) and the lower daily Bollinger Band. The proximity of this support area and the bullish divergence on the daily Stochastic indicator increase the probability USD/CHF will continue to rise inside this Down Channel.