Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF recently broke the key support level 0.9203 which was previously identified by Autochartist on the hourly charts. Autochartist rates the Significance of this support level at the 3-bar level – which is the result of the three previous price reversals from this price level. USD/CHF is expected to continue to fall toward the forecast price 0.9178.

As can be seen from the daily USD/CHF chart below – the price earlier reversed down from the resistance area located between the pivotal resistance level 0.9250 (which has been repeatedly reversing the price from last month) and the 50% Fibonacci correction of the previous sharp downward correction from the end of November. The proximity of this resistance area increases the probability USD/CHF will continue to fall toward the forecast price 0.9178.