08 Nov 2024

The EUR/CHF currency pair has developed a Triangle pattern over the past three months, indicating that it is nearing completion as it converges towards a point near 0.9400.

A breakout is anticipated to occur shortly. Given the prevailing long-term bearish trend, a downward breakout appears slightly more likely.

If the EUR/CHF currency pair breaches the lower boundary of the Triangle and descends below the 0.9307 level, which corresponds to the lows observed on September 11, it is likely to indicate a genuine breakout. The subsequent target on the downside would be positioned at 0.9132, representing the 61.8% Fibonacci extension of the Triangle's lower height.

While an upward breakout is considered less probable, it remains a possibility. A movement surpassing the September 25 high of 0.9508 would likely validate a bullish breakout, with the next target extending to 0.9581, the 61.8% Fibonacci level for the Triangle's upper boundary.

The Average Directional Index (ADX) serves as a gauge for the strength of price trends. Currently at 14.13, it is relatively low, indicating that a rise is anticipated as the price enters its next phase of directional movement.