EUR/CHF continues to rise after the earlier breakout of the 4-hour falling wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 7-bar level – which is the result of the above-average Initial Trend (6 bars), lower Uniformity (4 bars) and significant Clarity (7 bars). EUR/CHF expected to rise toward the forecast price 1.1359 – in line with the previous upward reversal from the support area shown below.
As can be seen from the daily EUR/CHF chart below, the bottom of this Falling Wedge formed when the price reversed up from the support zone lying between the key support level 1.1250 and the lower daily Bollinger® Band. The upward reversal from this support zone created the daily Japanese candlestick reversal pattern Morning Star. The proximity of this support zone increases the probability EUR/CHF will continue to rise toward the forecast price 1.1359.
