Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to rise inside the daily Down Channel chart pattern which was recently previously by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which reflects the average Initial Trend (5 bars), lower Uniformity (4 bars) and medium Clarity (5 bars). USD/CHF is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the strong support area shown below.

As can be seen from the daily USD/CHF chart below, the price earlier reversed up from the strong support area lying between the key support level 0.9720 (which has been reversing the price from January) and the lower weekly Bollinger Band.  The proximity of this support area increases the probability USD/CHF will continue to rise inside this Down Channel.