USDCHF looks poised for its most explosive move in over a year.
Get all the details and see exactly how I’m trading it in today’s video.
USDCHF has been sideways since the start of 2021. Moreover, it’s been plagued by choppy price action, which is pretty typical for the Swissie.
However, over the last 14 months, the price action has become progressively tighter.
We can visualize this by the triangle pattern that has developed since the start of 2021.
It’s a massive 600-pip pattern with significant implications depending on which way this breaks.
And that’s the key. I’ll be waiting for a confirmed breakout before trying to trade USDCHF. Anything before that is far too dicey.
A confirmed breakout would be a daily close above resistance or below support. Those levels come in near 0.932 and 0.917, respectively.
If USDCHF breaks higher, key resistance is 0.937, 0.968, and the 2021 high at 0.947.
And if it breaks lower, support comes in at 0.909, 0.893, and 0.876.
The measured objective for the pattern is its 600 pip height. So a break higher would target roughly 0.992, while a break lower would aim for 0.857.
Keep in mind that any move from USDCHF of that significance would likely take weeks, if not months.
Also know that the objectives discussed above are simply estimates.
There are no guarantees that USDCHF will hit those targets following a breakout, so it’s usually a good idea to book some profit early on.
As always, none of the above is financial advice as it’s just my opinion.