By: Dima Chernovolov
USD/CHF continues to fall strongly after the pair the daily Descending Triangle chart pattern, which was previously identified by Autochartist. Autochartist measures the quality of this Descending Triangle at the 8-bar level – which is the result of the strong Initial Trend (8 bars), above-average Uniformity (7 bars) and medium Clarity (5 bars). USD/CHF is expected to fall toward the forecast price 0.8826 – in line with the earlier breakout of the key support level shown below.
As can be seen from the daily USD/CHF chart below, the breakout of this Descending Triangle coincided with the breakout of the key round support level 0.9000 (which has been reversing the price from August). This price level is acting as the strong resistance after it as broken. The proximity of this resistance level and the strength of the daily downtrend increase the probability USD/CHF will continue to fall toward the forecast price 0.8826.