USDCHF Breaks Free From the Symmetrical Triangle Design

USDCHF Analysis – Price Breaks Out of the Symmetrical Triangle Pattern

USDCHF breaks out eventually after a prolonged period of tapering movement within a symmetrical triangle design. The market was caught below the 0.92570 critical level, which is very prominent for price direction. USDCHF gathered momentum below this level in the triangle pattern for one month. This led to a strong breakout, first from below the key level and then from the triangle pattern itself.

USDCHF Key Levels

Resistance Levels: 0.96760, 0.94640
Support Levels: 0.92570, 0.91870
The market’s tapering movement within the symmetrical triangle has a beginning that can be traced back to June last year. The pattern results from the market trying to end an elongated bearish round that has previously pervaded the pair. Hence, the 0.87640 key level is the last line of support that price has stooped to reach as it follows a pattern of tapering movement within the triangle.

Throughout price movement within the symmetrical pattern, the 0.92570 critical level was very influential. It mostly acted as a barrier to the upward trend. This, however, often helped the price to gather momentum below it. This brought about the final breakout of the market beyond the triangle pattern on the 17th of March.

Market Expectations

The 4-hour chart clearly shows the activities of the market before it finally breaks out of the chart pattern. The price is seen to accumulate momentum below the critical level of 0.91870. This leads to a double bottom chart pattern that drives USDCHF past the level and out of the triangle. USDCHF is now stalling below 0.94640, to which the RSI (Relative Strength Index) is retracing from an overbought zone. With the MA period 25 (Moving Average) firmly below the candles, it is only a matter of time before the price breaks out past this level towards 0.96760.

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