By: Dima Chernovolov
CAD/CHF today broke the 30-minute Inverse Head and Shoulders chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Head and Shoulders at the 4-bar level – which is the result of the strong Initial Trend (8 bars ), lower Uniformity and Clarity (3 and 1 bars). CAD/CHF is expected to rise toward the forecast price 0.7460.
As can be seen from the daily CAD/CHF chart below – the price earlier reversed up from the pivotal support level 0.7365 (which has been reversing the price from March), standing next to the lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward price impulse from last December. The proximity of this support level adds to the probability CAD/CHF will continue to rise toward the forecast level 0.7460.