Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to fall inside the 4-hour Down Channel chart pattern, which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars) below-average Uniformity (4 bars) and strong Clarity (8 bars). USD/CHF is expected to fall further inside this Down Channel.
As can be seen from the daily USD/CHF chart below – the pair earlier broke the support area lying at the intersection of the support level 0.9180 (which stopped the pair at the start of February) and the 61.8% Fibonacci correction of the upward impulse from January. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area increases the probability USD/CHF will continue to fall inside this Down Channel.