Trade of the Day: USD/CHF
By: Dima Chernovolov
USD/CHF continues to fall inside the daily Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Up Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and stronger Clarity (8 bars). USD/CHF is expected to fall further inside this Up Channel – in line with the earlier downward reversal from the key resistance area shown below.
As can be seen from the daily USD/CHF below, the price earlier reversed down from the resistance area lying between the multi-month resistance level 1.0100 (which has been reversing the price from November) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability USD/CHF will continue fall inside this Up Channel.