Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to rise inside the clear 4-hour Up Channel which was recently identified by Autochartist. Autochartist rates the quality of daily this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (3 bars), significant Uniformity and Clarity (both rated at the 7 bar level). 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 below, the price earlier broke through the resistance area lying between the key resistance level 1.1310 (former support from February and March), 100-day moving average and the resistance trendline from February. This price zone is acting as a support zone after it was broken. The proximity of this support area increases the probability D/CHF will continue to rise inside this Up Channel.