USDCHF Is Disposed to Break the Upside of Its Symmetric Triangle

USDCHF Analysis – Price Is Disposed to Break to the Upside of Its Triangle Pattern

USDCHF is disposed to break to the upside of its symmetric triangle pattern. The price has been tapering through the triangle pattern for a while now, regularly attaining higher lows and lower highs. The market has already shown its tendency to be skewed to the upside as it made a false breakout on the 10th of March. The price is now ready to break out of the triangle to attain higher heights finally.

USDCHF Key Levels

Resistance Levels: 0.96760, 0.94640, 0.93410
Support Levels: 0.92570, 0.89960, 0.87640
The tapering movement of the price through the triangle was initiated in June 2020 as the market broke through the 0.94640 support level. The price first took hold at 0.98860 before a further plunge to 0.87640. The price rose back to the 0.94640 support level, where it suffered acute rejection. This paved the way for another significant drop, but this time, the market was able to recover from 0.89960.

Since then, USDCHF has been consistently making higher highs, but at the same time, the price is not making any significant higher highs. This has led to the MACD (Moving Average Convergence Divergence) line oscillating about the zero level with dwindling highs and lows. Notwithstanding the tapering movement of the market, the MA period 200 supports the daily candles more from below to make the market disposed to break upwards of the pattern.

Market Expectations

Price formed a double bottom chart pattern on the 4-hour chart, indicating that an initial breakout was engineered. This led to a break and retest of the 0.92570 neckline. Then the market broke to the upside of the triangle and drove further to 0.94640, where it weakened and slumped back into the triangle. USDCHF has taken a firm stand at the 0.92570 key level and is now poised to have another go at the 0.94640 key level.

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