Forex: EUR/CHF broke below the 14-month triangle - ACM

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FXstreet.com (Barcelona) - Euro decline from 1.5140 high on Monday has extended during Asian session with a sharp drop through 1.5000 long-term resistance, breaking below the 14-month triangle formation, as Peter Rosenstreich, technical analyst at ACM - Advanced Currency Markets, observes.

Daily closing below the mentioned figure could trigger downtrend to 1.3550, according to Rosenstreich: EURCHF has been forming an enormous symmetrical triangle formation for the past 14 months, and chart-followers will be rubbing their hands in glee at the prospect that this move has provided the daily closing break lower that signals an even more significant move lower down towards 1.3550 levels.

Nevertheless, regarding the Swiss Franc, Rosesnstreich advices caution as the SNB could intervene the pair and bring the CHF higher: Policy-makers have always been careful to avoid setting a target exchange rate for EURCHF, and we could very easily envision a scenario where the SNB steps in at slightly lower levels, but intervenes with the same characteristic aggression as before.

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