USD/CHF Price Analysis: Rising wedge hints a possible reversal from 2-month tops
- USD/CHF struggled to capitalize on the intraday uptick to fresh two-month tops.
- Mixed technical set-up warrants caution before placing any fresh directional bets.
The USD/CHF pair edged higher through the mid-European session on Wednesday and touched a fresh two-month high level of 0.9844, albeit lacked any strong follow-through.
The intraday uptick once again faced rejection near a resistance marked by a near two-week-old ascending trend-line, which should act as a key pivotal point for short-term traders.
The mentioned trend-line, along with another ascending trend-line seemed to constitute towards the formation of a bearish rising wedge pattern, indicating a possible reversal.
Meanwhile, technical indicators on hourly/daily charts maintained their bullish bias and are still far from being in the overbought territory and support prospects for additional gains.
However, it will be prudent to wait for a sustained strength beyond the mentioned trend-line resistance, around the 0.9845-50 region, before placing any fresh bullish bets.
On the flip side, a convincing break below the 0.9820 region will reaffirm the bearish set-up and confirm a bearish breakdown, prompting some aggressive technical selling.
The pair then might accelerate the fall further towards the 0.9785 horizontal support before eventually dropping to its next major support near the 0.9760 region.
USD/CHF 4-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
