USD/CHF 4H Chart: Rising Wedge

Due to a strong support zone near 0.88 USD/CHF managed to commence a robust recovery on Dec 27. As a result, the currency pair has covered as many as 330 pips.

Nonetheless, there are already several signs that the bullish momentum is weakening and is about to come to an end. The main indicator is the rising wedge pattern that the price has been forming for the past 20 days. Usually in this case we would expect the rate to breach the lower boundary of the figure and plummet down to 0.8976 or even 0.88. Moreover, while the four-hour and daily studies are bullish, the weekly indicators are suggesting that the longer-term perspectives are in favour of a decline.