EUR/CHF 4H Chart: Rising Wedge

The market remains bullish after EUR/CHF broke out of the triangle. However, there are signs the tendency may soon discontinue and give way for a sell-off. This is evidenced by a rising wedge pattern that is emerging on the four-hour chart. Consequently, if the upward-sloping trend-line is breached, the Euro will most likely extend the decline to the May 14 low at 1.2191, which is also the current location of the 200-period SMA. On the other hand, if 1.2215 initiates a recovery that will surpass the May 20 high at 1.2239, instead of the rising wedge EUR/CHF could potentially form a bullish channel.  This scenario seems particularly plausible considering the sentiment—70% of positions are long.