Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to fall inside the 15-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and strong Clarity (9 bars). USD/CHF is expected to fall further inside this chart pattern – in line with the earlier downward reversal from the resistance zone shown below.
As can be seen from the daily USD/CHF chart below, the price earlier reversed down from the resistance zone located between the key resistance level 0.9240 (former pivot high from August), upper daily Bollinger Band and the 50% Fibonacci correction of the downward impulse from July. The proximity of this resistance area adds to the probability USD/CHF will continue to fall inside this Falling Wedge.