After developing for six years within a wide consolidation USD/CHF might be forming a pennant and if it breaks out below it the pair could reach 0.65 or even fall below that level.
This is, at least, how the situation looks like from a technical analysis point of view, but we should not forget two things:
The large monthly bar from January 2015 was formed for just one day – on 15th January 2015, when the Swiss Bank suddenly announced it would not hold the Swiss franc at a fixed exchange rate with the Euro and that announcement caused USD/CHF to suddenly fall with almost 3000 pips over the course of mere hours.
Still, there is a distinct pennant on the charts and if the Swiss Bank doesn’t interfere with the market again the perspective is that the CHF will rally, as much as the Swiss financial institutions wouldn’t want that.
Good take on markets, really insightful.
ReplyDeleteNice wedge formation.
ReplyDeleteExcellent observation!
ReplyDeleteGood post!
ReplyDeleteLet's see whether it will break out below the trend line.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteThanks for the tips.
ReplyDelete