EURCHF will start a new year with a breakout from the symmetric triangle, but when?
02 January 2023
The technical analysis part of this year will start with the analysis of the EURCHF, which is one step from a major trading signal. Since the beginning of October, the pair is forming a symmetric triangle pattern (black), where the volatility decreases over time. Clearly, we are waiting for the breakout which supposes to show us the direction for the next weeks or even months.
Overall, EURCHF is in a downtrend and the rise from the end of the year is just a bullish correction. Interestingly, this correction has the same amount of pips as the one from the first half of the year (yellow rectangles). This phenomenon does not happen too often.
What are the options here? Price breaking the upper line of the triangle and later the 0.998 resistance (blue) would be a proper buy signal. Breakout of this horizontal resistance and climbing above the parity is rather a must for the buy signal here. On the other hand, price breaking the lower line of the triangle would mean a legitimate sell signal and a comeback to the dominant, long-term bearish trend. This week’s calendar is rich with data from Switzerland so maybe traders will find inspiration in the coming numbers.