Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to fall inside the daily Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 5-bar level – which is the result of the slow Initial Trend (2 bars), above-average Uniformity (6 bars) and higher Clarity (7 bar level). USD/CHF is expected to fall further inside this Falling Wedge – in line with the earlier downward reversal from the resistance area shown below.
As can be seen from the USD/CHF chart below, the price earlier reversed down from the resistance area located between the key resistance level 0.9200 (which also reversed the price at the start of October), upper daily Bollinger Band, resistance trendline from June and the 61.8% Fibonacci correction of the downward impulse from September. The proximity of this resistance area increases the probability USD/CHF will continue to fall inside this USD/CHF.