Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to rise inside the hourly Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (4 bars), strong Uniformity (8 bars) and significant Clarity (7 bars). USD/CHF is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance area shown below.

As can be seen from the daily USD/CHF chart below, the price earlier broke the resistance area located between the key resistance level 0.9240 and the 50% Fibonacci correction of the previous downard impulse from July.  This price area is acting as the support zone after it was broken. The proximity of this support zone adds to the probability USD/CHF will continue rise inside this hourly Up Channel.