SWISS FRANC TECHNICAL FORECAST – TALKING POINTS
USD/CHF may continue 2020 downtrend on triangle break
GBP/CHF rebounds above key moving average within channel
USD/CHF TECHNICAL FORECAST
Since January, the Swiss Franc surrendered ground versus the US Dollar, with USD/CHF up nearly 3.5% on a year-to-date basis. However, a Symmetrical Triangle pattern has taken shape through this year. That may result in the currency pair breaking lower and continuing the preceding downtrend. The Franc gained nearly 10% versus the Greenback in 2020.
Currently, prices are perched above the 100-day Simple Moving Average, which has been providing support since early August after prices bounced higher from triangle support. While symmetrical triangles typically lead to a continuation of the prior trend, a breakout higher is not off the cards. Prices may continue to consolidate within the pattern, but a slightly bearish bias is present while in the triangle.