EUR/CHF Price Forecast: Probing base of Triangle as price attempts to break out
- EUR/CHF is trading at the bottom of a Triangle pattern.
- The pair looks vulnerable to breaking lower.
EUR/CHF is probing the base of a Triangle pattern it has formed over the last three months (see chart below). It has broken below the bottom of the Triangle on an intraday but not a closing basis. That said, the base seems weakened and vulnerable to finally giving way.
EUR/CHF Daily Chart
A break below the 0.9339 November 13 low would probably confirm more weakness down to the next downside target at 0.9132, the 61.8% Fibonacci extrapolation of the height of the Triangle lower.
The bearish trend prior to the formation of the Triangle (Since May 27) further tips the odds in favor of a downside evolution.
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.
