EUR/CHF Price Forecast: Triangle pattern completing, breakout to follow


  • EUR/CHF has formed a Triangle pattern which looks poised to breakout
  • A downside break is marginally more probable given the longer-term trend is bearish. 

EUR/CHF has formed a Triangle pattern over the last three months which looks like it is on the verge of completing as it tapers to a tip at around 0.9400. A breakout should soon follow. 

EUR/CHF Daily Chart

Since the market activity prior to the formation of the Triangle (Since May 27) was bearish and the longer-term trend is probably also down, the odds slightly favor a downside breakout. 

If EUR/CHF pierces below the lower boundary line of the Triangle and falls below the 0.9307 level (September 11 lows) it will probably confirm an authentic breakout. The next target to the downside would lie at 0.9132, the 61.8% Fibonacci extrapolation of the height of the Triangle lower. 

An upside breakout – though less likely – is possible. A move above the 0.9508 high of September 25 would probably confirm a bullish breakout and extend to the 0.9581 Fibonacci 61.8% target for the Triangle higher. 

The Average Directional Index (ADX) measures how strong the price is trending. At 14.13 it is currently relatively low, suggesting it will soon start rising again as price begins its next directional phase of development.  

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains pressured below 1.0800 on renewed USD strength

EUR/USD remains pressured below 1.0800 on renewed USD strength

EUR/USD stays under pressure and declines toward 1.0750 following Thursday's recovery. A renewed US Dollar uptick and a cautious mood weigh on the pair, as traders digest the Trump win and the Federal Reserve's monetary policy announcements.

EUR/USD News
GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD holds lower ground near 1.2950 amid tepid risk sentiment

GBP/USD trades in negative territory at around 1.2950 in the second half of the day on Friday. The emergence of dip-buying in the US Dollar and a tepid risk tone undermine the pair. The BoE’s cautious rate cut could check the pair's downside as traders comments from central bankers.

GBP/USD News
Gold fluctuates below $2,700 amid stronger USD, positive risk tone

Gold fluctuates below $2,700 amid stronger USD, positive risk tone

Gold trades below $2,700 in the early American session on Friday and is pressured by a combination of factors. Hopes that Trump's policies would spur economic growth and inflation, to a larger extent, overshadow the Fed's dovish outlook, which, in turn, helps revive the USD demand.

Gold News
Week ahead – US CPI to shift market focus back to data after Trump shock

Week ahead – US CPI to shift market focus back to data after Trump shock

After Trump comeback, normality to return to markets with US CPI. GDP data from UK and Japan to also be important. But volatility to likely persist as markets assess impact of Trump. 

Read more
October’s US CPI rates to be the next big test for the greenback

October’s US CPI rates to be the next big test for the greenback

With the US elections being over, Trump getting elected and the Fed having released its interest rate decision, we take a look at what next week has in store for the markets. On the monetary front a number of policymakers from various central banks are scheduled to speak at some point or the other.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures