Partner Center Find a Broker

There are no major reports coming up in the next session, so I’m looking at this USD/CHF triangle consolidation setup for now.

Risk appetite was feeble in the past few hours as traders continue to keep tabs on the repercussions of the pandemic. There haven’t been a lot of positive updates recently, though, so safe-havens remained supported.

Check out the headlines that dominated today’s Asian trading and how major forex pairs are looking so far:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • German preliminary CPI coming up
  • Spanish flash CPI due 8:00 am GMT
  • BOE MPC member Saunders’ testimony at 11:00 am GMT

What to Watch: USD/CHF

USD/CHF 1-hour Forex Chart
USD/CHF 1-hour Forex Chart

It’s gonna be another light London session in terms of data, so a quick consolidation play on this pair might work out.

USD/CHF has formed lower highs and higher lows to form a symmetrical triangle pattern on the 1-hour time frame, and the pair looks ready for a test of support.

Stochastic is pointing down to show that there’s some selling pressure left, but the oscillator is already closing in on the oversold region to signal exhaustion. Turning back up could confirm that a bounce is in order.

Risk-off flows from earlier today could also keep the lower-yielding dollar supported, although the franc has some safe-haven appeal on its side, too.

Dollar traders might decide to take it easy ahead of the release of the U.S. preliminary GDP reading later in the day, preventing any major breakouts from happening over the next few hours.

If you’re counting on a breakdown, though, better wait for a bearish candle closing below support in order to avoid getting faked out.

Not sure where to place your entries and exits? MarketMilk’s USD/CHF volatility tables should help sort things out!