By: Dima Chernovolov
USD/CHF continues to rise inside the Down Channel pattern which was previously identified by Autochartist on the 4-hour charts. Autochartist rates the Quality of this Down Channel at the 5 bar level – which reflects the slow Initial Trend (3 bars), below-average Uniformity (4 bars), and higher Clarity (6 bars). USD/CHF is expected to rise further inside this Down Channel – continuing the earlier upward sharp reversal from the support zone described below.
As can be seen from the daily USD/CHF chart below, the bottom of this Down Channel formed when the price reversed up from the strong support zone located between the pivotal support level 0.9870 (which also reversed the pair in January and March), 61.8% Fibonacci correction of the upward impulse from November and the lower daily Bollinger Band. The proximity of this support area increases the probability USD/CHF will continue to rise inside this Down Channel.
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