Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to fall inside the hourly Down Channel chart pattern which was earlier identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is t

he result of the slow Initial Trend (2 bars), similar Uniformity (3 bars) and above-average Clarity (6 bars). USD/CHF is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the resistance area shown below.

As can be seen from the daily USD/CHF chart below, the top of this Down Channel formed when the price reversed down with the daily Evening Star from the resistance area lying between the resistance level 0.9950 and the 50% Fibonacci corrector of the sharp downward impulse from April. The proximity of this resistance area increases the probability USD/CHF will continue to fall inside this Down Channel.