June 24, 2021 12:29:43
USD/CHF waving a bull flag
USD/CHF broke out of the descending channel from April to June we had highlighted in the past, after the hawkish Fed meeting last week. Strong bullish momentum pushed the pair into overbought territory on the daily RSI and the upper Keltner channel. Prices have now entered a short-term consolidation phase with the next initial resistance seen at the recent highs around 0.9237/39.
A conclusive breakout of the continuation (flag) pattern should target last September’s highs just below 0.93. The long-term trendline at 0.9380 looms above here. A break of yesterday’s low at 0.9153 warns of potential downside so placement for a stop, with last week’s break above the 200-day average turning that indicator into major support at 0.9125.
CAD/CHF potential ascending triangle
This year’s uptrend in CAD/CHF has slowed since it made cycle highs at the start of April and then again in mid-May above 0.75. A continuation pattern in the form of an ascending triangle looks to be playing out with support at the bottom trendline as the pair set higher lows. Ideally, there would be more touch points on the trendline as this makes the pattern more reliable so this could be a set-up for the watchlist.
That said, bullish momentum is picking up again which is reinforced by the cross into positive territory for the daily MACD and the rising RSI. First resistance sits around 0.75 with a potential breakout eyeing 0.76 and 0.7650.
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