The price of USDCHF had been making a mild upward trend from Sep 2nd to Sep 15th, which was long enough to build a solid trend. The price had recently made a steeper movement on Sep 15th; this jump lasted for five days. Then we can see that the pennant pattern has been building since the jump. As we all know, the pennant pattern is a breakout signal. Usually, the price would break out in the same direction as the previous trend; we can see the upward direction. So, where will the price go next? Will it make a breakout after pennant as we expect?
Usually, we do not see a clear signal before the breakout of a pennant. However, we can still find some hints here. The ATR is moving high to an upper lever, which means a fluctuation may come soon. MACD twisted in the zero level; it looks like the indicator is struggling, and the price is trying to make a direction. Also, we clearly signal that the Bollinger Bands shrunk, which is a clear breakout signal. Let’s focus on the signals and wait for the breakout.
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