EUR/CHF Price Forecast: Attempting a bearish breakout from a Triangle pattern

EUR/CHF is trying to break out of a Triangle pattern.
If it succeeds it will probably lead to further downside towards the price objective for the pattern.

Joaquin Monfort FXStreet

EUR/CHF is attempting to break out of a Triangle pattern it has formed over the last three months (see chart below).

EUR/CHF Daily Chart

A bearish close on Tuesday will indicate a decisive breakout has happened and suggest the start of a likely strong decline.

The market activity prior to the formation of the Triangle (Since May 27) further tips the odds in favor of a downside evolution.

If EUR/CHF breaks below the 0.9307 level (September 11 lows) it will further confirm an authentic bearish breakout, with the next target to the downside at 0.9132, the 61.8% Fibonacci extrapolation of the height of the Triangle lower.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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