USDCHF Consolidating in a Narrow Bottleneck
The USDCHF pair is consolidating within an increasingly narrower bottleneck, as illustrated by the two trend lines. Moreover, the price action is contained within the boundaries of a broad range - the 61.8 per cent and 38.2 per cent Fibonacci retracement levels.
Given that the ADX has been threading below the 25-point benchmark since the 9th of July and the Stochastic RSI is near its overbought extreme, a reversal from the upper boundary of the range seems probable. The price action is likely to head towards one of the two moving averages - the 100-day MA (in blue) or the 200-day MA (in orange) - before it can test the ascending trend line (in green).
Given that the ADX has been threading below the 25-point benchmark since the 9th of July and the Stochastic RSI is near its overbought extreme, a reversal from the upper boundary of the range seems probable. The price action is likely to head towards one of the two moving averages - the 100-day MA (in blue) or the 200-day MA (in orange) - before it can test the ascending trend line (in green).
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