Daily USD/CHF Continues to Consolidate within Triangle

The USD/CHF has been consolidating across multiple intraday time frames as the U.S. Dollar continues to find resistance at between 86.80 and 87.00 and support above 83.00.  This type of range-bound movement in the U.S. Dollar can find its way onto charts like the USD/CHF and EUR/USD - both of which are trading within triangle patterns.

The USD/CHF’s triangle has a low Initial Trend confirming the lack of a trend before the pattern developed.  However, be cautious of the low Clarity reading which could indicate that there is a chance for random (volatile) price movement.  The healthy Uniformity reading confirms that aesthetics of the pattern and the even layout of the touchpoints that have created the downtrend and uptrend lines of this symmetrical triangle.

Even though the pattern is a Continuation Triangle with the indication for a potential move higher, remember that all consolidation and congestion patterns can break in either direction so wait for the breakout or breakdown before taking any action.