Maybe a bit early, but looking at current market data I have plenty of reasons to believe USDCHF is forming a Head and Shoulders pattern.
For instance it would agree with UJ Seasonality. Trends of CADCHF and CHFJPY allow you to see where the third pair USDCHF is heading, a correlation technique I often like to use.
Momentum of the three pairs is forced by laws of nature, simple math applies, i.e. for the price we may roughly say, USDCHF = CADCHF x CHFJPY. Check out the scales left and right.
Cheers, Arnaud
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Instantly active but also continues once the pattern completes obviously.
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Ayo, to early indeed. New head right there.
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Divergence between CHFJPY and CADCHF when CHFJPY is rising will cause USDCHF to fall if the accumulated pressure of the first two overpowers the last one, additionally this should be valid throughout the market with UJ, UC & CJ the most powerful triangle imho.
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More downside to come. Likely up to the end of May..