Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF recently broke the daily Descending Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 7-bar level – which is the result of the below-average Initial Trend (4 bars), strong Uniformity (9 bars) and significant Clarity (7 bars). USD/CHF is expected to fall toward the forecast price 0.9190.
As can be seen from the daily USD/CHF chart below – the breakout of this Descending Triangle coincided with the breakout of the pivotal support level 0.9380 (which has been reversing the price from March). This price level is acting as the resistance level after it was broken. The proximity of this resistance level and the strength of the daily downtrend increase the probability USD/CHF will continue to fall toward the forecast price 0.9190.