Trade of the Day: USD/CHF

USD/CHF continues to fall inside the 30-minute Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which is the result of the medium Initial Trend and Uniformity (5 bars) and higher Clarity (7 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 key multi-month support level 0.8820 (which stopped the previous sharp weekly downtrend in April as can be seen below). The breakout of this support level 0.8820 strengthened the bearish pressure on this currency pair. Given the predominant weekly downtrend USD/CHF can be expected to fall further inside this Down Channel.