Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to rise after the earlier breakout of the 4-hour key resistance level 0.8920, which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the 7-bar level – which is the result of the seven previous price reversals from this price level. USD/CHF is expected to rise toward the forecast price 0.8978.
As can be seen from the daily USD/CHF chart below, the breakout of this resistance level coincided with the breakout of the 38.2% Fibonacci correction of the downward impulse from November. Both of these price levels are acting as the support after they were broken. The proximity of these support levels adds to the probability USD/CHF will continue to rise toward the forecast price 0.8978