EUR/CHF 4H Chart: False breakout

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Indicator 4H 1D 1W
MACD (12; 26; 9) Buy Buy Buy
RSI (14) Neutral Neutral Sell
Stochastic (5; 3) Sell Sell Buy
Alligator (13; 8; 5) Buy Neutral Buy
SAR (0.02; 0.2) Buy Sell Buy
Aggregate

On the Dukascopy chart for the common European currency against the Swiss Franc one can also see a failed forecast. The reason for that is the fact that the expected break out from a triangle pattern did not cause the expected effect.

Instead what occurred was a false break out. The currency exchange rate suddenly passed the support line of the triangle pattern and began to move lower. However, it was stopped by the support of the weekly S1.

As soon as the decline was stopped, the currency exchange rate began a surge up to the upper trend line of the triangle pattern and has recently even passed it. The reason for that might be the fact that potential short sellers closed their positions, as the break out failed.

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