Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF falling inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), maximum Uniformity (10 bars) and low Clarity (1 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 reversed down from the strong resistance level 1.0145 (top of the earlier impulse wave 1) and the upper daily Bollinger Band. The proximity of resistance area and the clear bearish divergence on the daily Stochastic indicator increase the probability USD/CHF will continue to fall inside this Down Channel.