The summer has now officially come to an end, so it's about time that this endless consolidation that came with it does the same. Considering we went from a 521 point range in June to a tiny 193 point range in September, it's almost guaranteed that we're going to break, and soon. You can not squeeze this pattern any more before you know what happens; it bursts. Personally, I'm out of USD/CHF, but if you're still long make sure you stops are tight to avoid any whipsaw in the overnight markets.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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