- EUR/CHF is trading at the bottom of a Triangle pattern.
- The pair appears vulnerable to a downside breakout.
EUR/CHF is testing the base of a Triangle pattern it has formed over the last three months (see chart below). It has broken below the bottom of the Triangle on an intraday basis but not on a closing basis. That said, the base appears weakened and vulnerable to finally giving way.
EUR/CHF Daily Chart
A break below the Nov. 13 low of 0.9339 would likely confirm more weakness until the next bearish target at 0.9132, the 61.8% Fibonacci extrapolation of the downside Triangle height.
The bearish trend prior to the formation of the Triangle (since May 27) further tilts the odds in favor of a downward development.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
