USD/CHF Price Analysis: A break and retest of the falling wedge pattern suggests a move higher is on the cards

1 month ago 18
43 CBD Solutions
USD/CHF is trading 0.21% lower in a mixed day in FX markets. There was a falling wedge set up and the price has broken and rested it.

USD/CHF 4-hour chart

CHF has been trading at relatively strong levels for a while now. Against the EUR, JPY and GBP the price has been increasing and this will not make the Swiss National Bank to pleased as being in the middle of the EU it could make exports too costly. Not to mention the effects it could have on inflation. 

The chart has thrown up some interesting technical developments. There was a falling wedge pattern that broke to the upside on 2nd September. Now the price has come back and retested the pattern this could usually lead to a move up. 

The indicators are telling a bit of a mixed story. The MACD signal lines and histogram are now under the zero level. The Relative Strength Index however is showing a bullish pattern called a failure swing. This is when the price makes a higher low but the indicator makes a lower low (sometimes moves oversold). This then give the price more room to the upside. 

The trend on the higher timeframes is very much a downtrend. This pattern and the fact there has been a higher low and higher high could mean that all of that is about to change. The key resistance level is now the previous wave high at 0.92. If that breaks it would be a bullish technical confirmation. 

USD/CHF chart pattern

Additional levels

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