© Dukascopy Bank SA
USD/CHF is continuing its decline after hitting the highest level since January 2011 and has formed a Falling Wedge pattern on the 1H chart. The pattern has 46% quality and 100% magnitude in the 252-bar period.
The pattern started when the pair rebounded from 0.9771 and after testing support levels at 0.9476 and 0.9421 it has slowed down at 0.9467 where the pair is currently trading. Current market sentiment is 75/25 in favor for the bulls. Long traders could focus on a daily resistance level at 0.9486. If this level is breached, next target could be at 0.9506.
Technical indicators on aggregate point at a bear market outbreak on 1D time horizon. Short traders could focus at 0.9463. If the pair breaches this level, next possible targets could be at 0.9451, 0.9432 and recent low at 0.9421.
© Dukascopy Bank SA