EUR/CHF 1D Chart: Rising Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA
After the plunge in EUR/CHF, when the SNB unpegged the Franc from the Euro, the Swiss currency has been generally weakening. However, there is a concern that this tendency will soon come to an end. The pair is forming a rising wedge, a pattern that portends a strong sell-off. We should therefore be wary of the green trend-line being breached to the downside during the next month or two. If this is the case, we will look forward to a test of the 1.0774/36 support area, where the Nov 2015 low coincides with the long-term moving average. In order to invalidate the negative outlook, the rate should gain a foothold above 1.12 francs, where resistance is implied by the up-trend, monthly R1, and Feb high.
© Dukascopy Bank SA
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