Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to rise inside the hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 7-bar level – which is the result of the slow Initial Trend (4 bars), above-average Uniformity (6 bars) and strong Clarity (9 bars). USD/CHF is expected to rise further inside this Up Channel – in line with the earlier upward reversal form the support area shown below.
As can be seen from the daily USD/CHF chart below, the price earlier reversed up from the combined support area lying between the key support level 0.9850, 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 inside this Up Channel.