In today's technical analysis, we’re looking at a less commonly traded but technically interesting pair — the Canadian Dollar to Swiss Franc (CADCHF). On the H4 chart, the price has been locked inside a symmetric triangle formation since the end of June, marked by converging blue lines. Triangles like this often act as continuation patterns, but they also set the stage for strong directional moves once broken.
Late last week, the price dipped below the lower boundary of the triangle, threatening a downside breakout. But that move quickly reversed. The pair snapped back into the formation, making that move a classic false breakout — a bear trap — which is marked in green on the chart. False breakouts often serve as powerful signals in the opposite direction, and that’s exactly what’s playing out here.
Since re-entering the triangle, the price has gathered momentum and is now breaking above the upper boundary. This breakout to the upside confirms a bullish sentiment. As long as CADCHF remains above the upper blue line, the outlook stays positive.
The next key target is the yellow horizontal resistance, which served as solid support back in May and June. Given the current momentum and clean technical structure, there’s a high probability that price will test that level soon. Unless we see a sharp reversal and a move back inside the triangle, bulls have the upper hand.