USD/CHF Forming Rising Wedge
02/19/2009 10:22 am EST
Price action on USD/CHF, a daily chart of which is shown, continues to bounce around within the borders of a rising wedge formation. Considerably bullish within the last couple of days, the pair has risen sharply from the bottom of the wedge to the top, and has been fluctuating right around the upper border as of Wednesday morning in New York (2/18).
This upper border currently coincides approximately with a key support/resistance level in the 1.1800 price region. With any continued bullishness and a strong breakout and close above both the wedge pattern and the 1.1800 area, price should meet immediate further resistance around the 1.1925 prior support/resistance region. Dynamic support to the downside continues to reside around the uptrend support line that serves as the bottom border of the wedge consolidation.
By James Chen, Chief Technical Analyst, FX Solutions