Trade of the Day: CAD/CHF
By: Dima Chernovolov
CAD/CHF continues to rise inside the hourly Rising Wedge chart pattern which was identified previously by Autochartist. Autochartist measures the quality of this Rising Wedge at the 5-bar level – which is the result of the slow Initial Trend (3 bars), higher Uniformity (7 bars) and above-average Clarity (6 bars). CAD/CHF is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily CAD/CHF chart below, the price earlier reversed up sharply from the support area lying between the key support level 0.7275 (which previously reversed the price with the daily Hammer at the start of August) and the lower daily Bollinger Band. The proximity of this support area adds to the probability CAD/CHF will continue to rise inside this Rising Wedge.