USDCHF: Triangle Pointing To The Upside; Bullish Momentum Could Follow
USDCHF has been moving sideways since end of March. We see five price swings between two trendlines that reminds us on a triangle formation. That's a five wave A-B-C-D-E pattern that occurs in the direction of a trend, so it's a continuation formation that suggests more upside for USDCHF. In fact this bullish trend continuation may resume very soon after recent bounce from 0.9470 and towards the upper resistance line. Move from the last few days is sharp, so break above the trendline may not be far away which will confirm a bullish run for the USD against the Swiss Franc. We see 1.0000 coming, but then even 1.0300-1.0400 in months ahead.
USDCHF has finally broken to the upside, out of a downward channel that lift prices up to 0.9740 as expected. We see current leg as wave (3) of a new bullish impulse so more gains should follow ahead, especially after a wave four pullback that can take place in the next few sessions.
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
Basic Triangle Pattern:
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