CAD/CHF 4H Chart: Rising Wedge

CAD/CHF is treading water around the monthly R2. This resistance has not established itself as a major provider of supply to the market; therefore, an upper bounce off this mark (0.7706) seems very possible. By confirming the April 22 high at 0.7753, the pair will be in a good position to climb up to the third monthly resistance line at 0.7815. Considering that it is immediately followed by the pattern's upper edge and weekly R1, a sell-off from here would carry an increased likelihood. Nevertheless, the short-term scenario is undoubtedly bullish, also from the perspective of the SWFX sentiment, which is 74% short. On top of that, daily and weekly technical indicators are broadly backing the rally.