Breaking out of a triangle?
The Swiss Franc (CHF) appears to be breaking out of its 7–month triangle.
The current rally in the US Dollar (USD) has taken prices to above the triangle resistance but came marginally short of a confirmation.
Moving above the d-wave high of 0.9844 would definitely boost the idea that more legs are likely for the USD in the coming months.
The short term view remains that the USD is still rallying in an impulsive manner. A pullback is likely here in wave iv, roughly towards the previous fourth wave extremes at lesser degrees namely 0.9712-0.9757.
Coincidently that coincides with the 23.6%FR (0.9758) and also the 38.2%FR (0.9709).
Therefore, the 0.9709-0.9758 band is a good support for the USD for the coming correction as the 100-hour EMA also lies within the said band.
We continue to be bullish the USD against the CHF in the coming months as long as 0.9476 holds
. (Read Report)
Source : CIMB Research
Labels: Forex, Technical Analysis