As we explained in previous posts, USDCHF is inside a triangle pattern formation and we expect volatility to rise by mid October latest. The weekly candlestick is now challenging the upper triangle boundary. It is important to see if price breaks out this week.
USDCHF is trading around 4 week highs. At 0.9220 we have the upper triangle boundary resistance. A weekly close above this level will provide us with a bullish signal. If this happens then we should expect more upside by the USDCHF. However we should not be surprised if price gets rejected at current levels and turns lower towards 0.91 again. The triangle has more room for price to navigate so we are not sure if the breakout will happen sooner or closer to our deadline of mid October.
