By: Dima Chernovolov
USD/CHF continues to fall inside the hourly Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which reflects the slow Initial Trend (1 bar), significant Uniformity (7 bars) and near-maximum Clarity (9 bars). USD/CHF is expected to fall further inside this Down Channel – in line with the earlier breakout of the support area shown below.
As can be seen from the daily USD/CHF chart below – the price earlier broke the support area lying between the key support level 0.9500 (low of the previous sharp correction from March) and the 50% Fibonacci correction of the previous upward price move from the start of march. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area adds to the probability USD/CHF will continue to fall inside this Down Channel.