USD/CHF has just completed the high Quality Rectangle chart pattern on the daily charts. The Quality of this chart pattern is measured by Autochartist at the 9 bar level, as a consequence of the strong values of all the quality indicators: above average Initial Trend value (rated at the 6 bar level) and maximum Clarity and Uniformity of this Rectangle (both showing the 10 bar reading). This chart pattern continues the long-term prevailing downtrend visible on the daily and the weekly charts. The price has just broken through the lower support line of this Rectangle (which runs very close to the support level at 0.9300 that previously reversed the pair) with the Breakout measured at the highest 10 bar level. The price is expected to continue falling toward the Forecast Zone set between price levels 0.8792 and 0.9082.
The 15-minute chart shows the Down Channel chart pattern that is developing in accordance with the breakdown on the daily chart. The upper resistance line of this Down Channel can be used for sell entries protected with a close stop-loss.
Opening a sell order at this level would require placing the stop-loss at up to 3 EPRs (Expected Price Range) from entry. As you can see from the PowerStats chart below, one EPR for the 15-minute USD/CHF chart is equal to 20 pips.
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