Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to rise inside the 4-hour Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), above-average Uniformity (6 bars) and higher Clarity (8 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 key resistance level 0.9095 (which has been reversing this currency pair from the end of November) intersecting with the 50% Fibonacci correction of the downward impulse from September. This price area is acting as the support zone after it was broken. The proximity of this support area increases the probability USD/CHF will continue to rise inside this 4-hour Up Channel.