I’m seeing a simple triangle chart pattern on the 4-hour chart of EUR/CHF, and it looks like the pair could test the top soon.
Do you think resistance might still hold?
Or are we about to see a big breakout?
EUR/CHF: 4-hour
EUR/CHF 4-hour Forex Chart by TV
This euro pair formed lower highs and found support around the .9520 level, creating a descending triangle pattern.
Price is closing in on the top of the triangle, which happens to be right around the .9600 major psychological mark. If this holds as a ceiling, EUR/CHF could fall back to the triangle bottom once more.A break above the resistance, on the other hand, could be followed by a rally that’s the same size as the chart pattern. That’d be roughly 130 pips yo!
Technical indicators are hinting at a return in bearish vibes soon, too. The 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside while Stochastic is already reflecting exhaustion among buyers.
We’ve got a handful of mid-tier economic releases from the eurozone over the next few days, including the flash CPI readings from the bloc.
Number crunchers are predicting slower inflationary pressures for August, likely emphasizing the ECB’s recent shift to a less hawkish stance. Headline CPI is slated to fall from 5.3% to 5.1% year-over-year while the core CPI could drop from 5.5% to 5.3%.
EU economic forecasts and the ECB meeting minutes are also lined up, so more insights highlighting the central bank’s cautious view could bring fresh downside for the shared currency.
Either way, don’t forget to account for the average EUR/CHF volatility when trading this one!
