Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to rise inside the clear 30-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (5 bars) and substantial Clarity (8 bars). USD/CHF is expected to rise further inside this Up Channel – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily USD/CHF chart below – the price earlier reversed up from the support area lying between the multi-month resistance level 0.9660 (which stopped the sharp downward impulse in August) and the lower daily Bollinger Band. The proximity of this support area increases the probability USD/CHF will continue to rise inside this Up Channel.