AUD/CHF 4H Chart: Rising Wedge

Though the market is distinctly bullish right now, the vertical distance between the recent lows is larger than the distance between the recent highs. Accordingly, there is a slight but nonetheless a possibility of AUD/CHF forming a rising wedge, a pattern that generally portends a reversal. But as long as the support at 0.8426 (weekly S1, 200-period SMA and up-trend) remains intact, the outlook should stay positive, as suggested by the daily and weekly technical studies. The risks will be even more skewed to the upside if the price gains a foothold above upper boundary of the pattern at 0.8569, which is also strengthened by the Jul 24 high and weekly R1.