Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to rise inside the 4-hour Falling Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Falling Wedge at the 6-bar level – which is the result of the sharp Initial Trend (10 bars – reflecting previous sharp upward impulse), lower Uniformity (3 bars) and medium Clarity (5 bars). USD/CHF is expected to rise further inside this Falling Wedge – in line with the earlier upward reversal from the support area show below.
As can be seen from the daily USD/CHF chart below – the price earlier reversed up from the support area located between the key support level 0.9210 (former monthly high from October) and the 38.2% Fibonacci correction of the previous upward impulse from February. The proximity of this support zone and growing Swiss franc bearishness add to the probability USD/CHF will continue to rise inside this Falling Wedge.