by Seth Parker on September 19th, 2018

NZDCHF Analysis – Third triangle in a row

For the past few weeks, CHF was one of the best currencies in the world and was gaining significantly almost on every pair. It seems that the correction time has come and CHF buyers will start to take some profits.

We will use the NZDCHF as a nice example of that as the situation here is very technical and not only now but actually, for the past few weeks. In July, the price formed a nice symmetric triangle (green), which ended with a bearish breakout. On August, we had the same formation but a bit smaller (red). The outcome was the same though – drop. Most recently, the price created another, this time the smallest version of this pattern (blue) but surprisingly, the breakout was to the upside.

nzdchf chart

That bullish breakout brings us a buy signal here and a potential trend reversal. Correction is more or less certain but I think that buyers will try to use this momentum for something more than just a temporary rise.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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