Stocks are climbing up; Gold is undergoing a bearish correction so it looks that risk associated with the Middle East tension is gone. Maybe yes, but there still is one instrument from the safe heaven group, which is showing a great strength – Swiss Franc.
We will start with a small update about the USDCHF, which we were talking about few days ago. Back then, we pointed at the flag pattern and the price bouncing from the crucial resistances. We were bearish. USDCHF did not disappoint us and easily broke the lower line of the flag aiming south. Yesterday’s breakout triggers us a legitimate sell signal.
Next one is the AUDCHF, which also was on our radar in one of our previous analysis. Here, there was no surprise as well. The price tested crucial resistances and after drawing a flag, went lower. The sentiment is negative and the AUDCHF is aiming the lows from the August 2019.
Last one is the EURCHF, where we have a similar setup, so a breakout of the lower line of the flag and a sharp drop. We are also mentioning this instrument to show You the power of the technical analysis. The price patterns in particular. The whole drop started with the head and shoulders pattern and the breakout of its neckline. Then, we had a rectangle and the breakout of its lower line. Then a flag mentioned above. Real beauty and I wish You to find more handsome setups like that in the future!
Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.