AUD/CHF 1H Chart: Ascending Broadening Wedge

Australian Dollar has been generally outperforming the Franc for the past 500 trading hours. However, instead of keeping the trading range constant, the swings from one trend-line to another were becoming wider with each new wave, leading in the end to formation of the broadening wedge.

Since this is a reversal pattern, the lower trend-line is now considered to be in danger, even though most of the hourly and daily technical indicators are currently pointing upwards. Once the support at 0.8378 is breached, the first target is going to be Jun 2 low at 0.8278, while the sell-off could potentially extend down to 0.8210, namely the May 21 low.