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EUR/CHF Coils At The Highs: Breakout Pending?

Published 03/16/2018, 06:03 AM

It’s been another turbulent week in the FX space with potential trade wars, moves in the Canadian dollar and Japanese yen accounting towards the bulk of the hype. This is all well and good if you were able to trade such moves but, if not, we’d propose looking at currencies which suggest range expansion is just around the corner. And one such pair we’re closely watching for this very reason is EUR/CHF.

EURCHF Chart

Since the 2017 low, EUR/CHF has remained predominantly bullish, although that is not to say it has been the prettiest of trends throughout. Between August ’17 and early January ’18 the pair found itself grinding higher and its messy trend structure produced unforgiving overlaps between peaks and troughs.

Yet since retracing from the 1.1831 high and subsequently rebounding from bullish trendline, price action is now displaying the qualities of a cleaner trend.

EURCHF Chart 2

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