Trade of the Day: USD/CHF

By: Dima Chernovolov

USD/CHF continues to rise in the direction of the Key Resistance Level 0.9901 which was identified previously by Autochartist. Autochartist rates the Significance of this Key Resistance Level at the 5-bar level – which is the result of the five previous reversals from this price level. USD/CHF is expected to rise toward the Resistance Level 0.9901 – in line with the earlier upward reversal from the key support area shown below.

As can be seen from the daily USD/CHF chart below, the pair earlier reversed up from the support area lying between the key support level 0.9850 (which has been reversing the price from the middle of September), lower daily Bollinger Band and the 50% Fibonacci correction of the previous upward impulse from August. The proximity of this support area increases the probability USD/CHF will continue to rise toward the Resistance Level 0.9901.