USDCHF volatility expected to rise by mid October.

USDCHF is trading sideways in a triangle pattern. Price is so far respecting the triangle boundaries. In the weekly chart we see that there is room for more sideways movement inside the triangle until mid October. This is the latest date we expect volatility to rise and thus provide a break out in USDCHF.

Black lines- triangle pattern

The weekly chart as shown above has formed a triangle pattern. The upper boundary is at 0.9215 while the lower boundary is at 0.9085. A weekly break out of these boundaries will provide a trading signal and will bring increase in volatility. Cautious traders would prefer to wait for price to make the break out before taking action. More aggressive traders would prefer to buy near the lower triangle boundary and go short near the upper boundary.