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CAD/CHF to Continue Downtrend via Symmetrical Triangle Breakout?

September 27, 2020 (Last updated on November 16, 2020) by

CAD/CHF has been in a rather clear downtrend since May 2018. In March of 2020, the currency pair began to consolidate inside a symmetrical triangle (actually a mix of a symmetrical triangle and of an descending triangle) on its weekly timeframe chart. A strong breakout of the bottom border would suggest a continuation of the previous trend down.

The triangle’s borders are the yellow lines on the chart below. The cyan line is the potential entry level; it is located at 10% of the triangle’s base width below the lower border. The green line, which is located at 100% of the same distance, is going to be my take-profit level. I will set my stop-loss to the high of the triangle’s base — 0.74429. Symmetrical triangles like this are trend continuation pattern, hence a bullish breakout will invalidate this setup.

CAD/CHF - Symmetrical Triangle Pattern on Weekly Chart as of 2020-09-27

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this CAD/CHF pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2020-11-16: I have canceled this setup due to an upside breakout from the pattern:

CAD/CHF - Symmetrical Triangle Pattern on Weekly Chart as of 2020-11-16 - Post-Cancellation Screenshot

If you have any questions or comments regarding this symmetrical triangle on the CAD/CHF chart, please feel free to submit them via the form below.

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