Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to fall inside the 15-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Falling Wedge at the 5-bar level – which is the result of the strong Initial Trend (8 bars), low Uniformity (2 bars), and significant Clarity (7 bars). USD/CHF is expected to fall further inside this Rising Wedge.

As can be seen from the daily USD/CHF chart below – the pair earlier broke below the powerful multi-month support level 0.9395 (which has been reversing the price from the middle of August). This price level is acting as the strong resistance after it was broken. The proximity of this resistance level increases the probability USD/CHF will continue to fall inside this Rising Wedge.