By: Dima Chernovolov
CAD/CHF continues to rise inside the 4-hour Falling Wedge chart pattern which was identified previously by Autochartist. Autochartist rates the quality of this Falling Wedge at the 7-bar level – which is the result of the strong Initial Trend (9 bars), lower Uniformity (3 bars) and near-maximum Clarity (9 bars). CAD/CHF is expected to rise further inside this Falling Wedge – in line with the earler upward reversal from the support area shown below.
As can be seen from the daily CAD/CHF chart below, the price earlier reversed up from the support area lying between the support level 0.7440 (which earlier revered the price sharply in September and October), lower daily Bollinger Band and the 50% Fibonacci correction of the previous upward impulse from August. The proximity of this support zone adds to the probability AUD/CHF will continue to rise inside this Falling Wedge.