USD/CHF Reaches Forecast Region Resistance

The USD/CHF has broken out of a Continuation Triangle chart pattern. The chart shows the Complete Pattern alert within the Forecast Region (A) indicating resistance.





The Forecast Region can be considered as a valuable area of resistance in this set up. This happened as the triangle breakout has ushered in the early stages of a markup cycle. Considering that the uptrend line (C) is now a potential trend following a buy trigger. If the Forecast Region resistance can bring about enough selling pressure there will be a correction in this new trend. The trend is currently weak. This must be considered when looking to enter a long position off the uptrend support line (C). Therefore look out for a supporting psychological level between the 1.0320 and 1.0295 levels.

There is a very short term chart pattern that supports this set up. It must be noted it is only nine bars in length. This, as time passes could obviously increase the size of the chart pattern but it's the uptrend line location that confirms the trend following a swing buy set up (X).

The Continuation Channel Up chart pattern has a higher Initial Trend (B) reading and could be the chart pattern to watch as prices correct.




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