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  • The USD/CHF is trapped within a triangle. A valid breakout brings new opportunities.
  • A new higher high could represent a long opportunity.
  • DXY’s further growth should force the USD/CHF to resume its upside journey.

The USD/CHF price continues to move sideways, so we’ll have to wait for a fresh trading opportunity. Technically, the price action has developed a symmetrical triangle inside of the extended range pattern. Personally, I believe that the USD/CHF pair could offer us great trading opportunities as the price cannot move sideways infinitely.

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Surprisingly or not, the price has managed to increase even if the United States Non-Farm Payrolls have come in worse than expected. The economic indicator was reported at 235K in August compared to 720K expected. In addition, the ISM Services PMI and the Final Services PMI indicator were reported worse than expected. It seems that the Dollar Index was too oversold to resume its downside movement after the US data dump. The Unemployment Rate dropped from 5.4% to 5.2% as expected, while the Average Hourly Earnings has increased by 0.6%, exceeding the 0.3% estimate.

Today, the United States banks are closed in observance of Labor Day. Tomorrow, Switzerland will release its Unemployment Rate, which is expected to drop from 3.0% to 2.9%. Better than expected data could help the CHF grow a little, while poor data could boost the pair. Actually, this is USD-driven, so the USD/CHF pair could rise only if the DXY resumes its bullishness. We have a strong positive correlation between the Dollar Index and this currency pair.

USD/CHF price technical analysis: Symmetrical triangle to play

USD/CHF 4-hour price chart
USD/CHF 4-hour price chart

The USD/CHF pair is trapped within the symmetrical triangle, so we’ll have to wait for a valid breakout before taking action. A valid breakout could bring us a clear direction. Technically, its breakout through the 150% Fibonacci line signals an upside pressure. This line represented a strong dynamic resistance. The triangle’s resistance, the R1 (0.9185), and the 0.9189 are seen as upside obstacles.

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The 0.9206 level represents an important static resistance. Escaping from the current triangle and from the extended range could really bring new trading opportunities. A new higher high, a valid breakout above 0.9206, may activate an upward movement.

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