USD/CHF Awaits Decision — Triangle Squeeze Nears Its End

In today’s technical analysis, let’s take a closer look at the American Dollar to Swiss Franc (USD/CHF), which is trading at a crucial technical crossroads. The pair has been moving inside a symmetric triangle pattern, marked with converging black trendlines, and is now approaching the apex — a point where volatility typically compresses before a strong directional breakout occurs. This is a moment where traders should stay alert, as a decisive move is just around the corner.

The lines forming this triangle are tight, and while minor variations in how one draws them may exist, they all point to the same conclusion — the pair is running out of space. A breakout above the upper black line followed by a 4-hour candle close above it would be a clear signal to buy, potentially opening the way for a strong bullish move, especially if momentum aligns with broader dollar strength.

On the other hand, a breakout below the lower black lines would trigger a sell signal, but to confirm a long-term bearish reversal, traders should also watch for a close below the orange horizontal support — a level that has historically acted as a key pivot. Only such a move would validate a deeper bearish scenario.

The market is clearly coiling and building pressure, and it’s only a matter of time before we see an explosive move. Traders should be ready for heightened volatility — whichever side wins this battle, the breakout on USD/CHF will likely set the tone for the next major directional move.

Source: https://www.axiory.com/analytics/technical-analysis/usd-chf-awaits-decision-triangle-squeeze-nears-its