USD/CHF 4H Chart: Falling Wedge

Note: This section contains information in English only.
Source: Dukascopy Bank
© Dukascopy Bank SA

USD/CHF lowered near its support level and has formed a Falling Wedge formation. The pattern has 67% quality along with 66% magnitude within 52 bars.

The pair has touched its resistance level twice at 0.9274 and 0.9178 during the last two weeks. The formation is in its last phase so traders could expect a   powerful breakout on the pattern levels. The Stochastic indicator bounced off from its critical oversold area at 20, which leads to the pair's possible recovery. If the price breaks the resistance at 0.9108 the first target for bulls could be around 0.9177.

RSI indicator was decreasing during the pattern's 40-bar period, what could be a sign of a bearish breakout. If the price breaks the support level at 0.9060 the initial target for short traders might be around 0.9012.

© Dukascopy Bank SA

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