Baxia Markets
September 07, 2021

Breakout Signal Ready: Will USDCHF Break Down?

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The pennant has been forming for sixty-eight days. Now, the pennant has almost finished. As we know, the pennant is a breakout signal. So a breakout would be on the expectation list. There is another question; which direction would the price go if the breakout takes place?




Now, the Bollinger Bands have shrunk, Ichimoku clusters around the price line; these two signals show that a breakout is coming. Usually, the pennant breakout direction depends on the previous trend. As can be seen, the prince had been through a downward trend before June 2nd.  On the other hand, we can consider this pennant a retracement of the downward trend before June 2nd; the price touched the 61.8% Fibonacci level. 


Although the pennant pattern is clear for now, we still do not have clues on the breakout direction. Stochastics moves in the middle; and the standard deviation remains in a low area. Now, we should keep our eyes on signals and indicators.


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