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USD/CHF Approaching Triangle Apex

After starting the year bearish, USD/CHF has stabilized since mid-March. 

(usdchf 4h chart, 5/1)

The 4H chart shows that after finding support around 0.87, USD/CHF has come up to 0.8950 and has since traded between these two levels. You also see a triangle, or congestion pattern as the market made higher lows and lower highs. 

It continued to do so this week, but price is now nearing the apex. 

Moving averages in the 4H chart are all clustered together, and going relatively sideways. This reflects a market in consolidation, ready to break out. Look for price to start staying on one side of the moving averages to confirm some commitment to a direction.

In the short-term a bullish break has the 0.8950 level in sight, while the bearish break opens up 0.87. 

The prevailing trend is bearish, and a break below 0.87 extends the trend toward the next support pivot level at 0.8567, the 10/23/2011 low.