- A time correction in the asset price will resume its upside rally after a potential trigger.
- The formation of Rising Wedge is advocating an upside break considering the broader context.
- The RSI (14) is oscillating in a bullish range of 60.00-80.00
The USD/CHF pair is hovering around Tuesday’s closing price at 0.9954 and is expected to continue its four-day winning streak led by a strong broader context. The asset has delivered a vertical upside move since the first trading session of April.
Despite the formation of a Rising Wedge chart pattern on a four-hour scale, the price action is not displaying any sign of exhaustion. Usually, a Rising Wedge depicts a bearish reversal on a downside break. However, the juggernaut move is betting over a resumption of the bullish momentum after a mild time correction.
The 20- and 50-period Exponential Moving Averages (EMAs) at 0.9906 and 0.9828 respectively are scaling sharply higher, which adds to the upside filters.
The Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which signals more upside ahead.
Should the asset oversteps Tuesday’s high at 0.9975, the greenback bulls will send the asset towards the psychological resistance of 1.0000. A breach of the latter will drive the asset towards the 3 October 2019 at 1.0028.
On the flip side, a slippage below Monday’s low at 0.9890 will drag the asset towards the 4 May high at 0.9853, followed by the 50-EMA at 0.9828.
USD/CHF four-hour chart
-637878183372665798.png)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD retreats below 1.3050 after UK data
GBP/USD stays on the back foot and trades in negative territory below 1.3050 early Tuesday. The data from the UK showed that the ILO Unemployment Rate declined to 4% in the three months to August, with Employment Change rising 373K, but failed to support Pound Sterling.
EUR/USD drops below 1.0900 amid resurgent USD demand
EUR/USD drifts lower below 1.0900 in European trading on Tuesday. Resurgent US Dollar demand and a cautious risk tone weigh on the main currency pair. Traders now look to Germany's ZEW survey and Eurozone Industrial Production data ahead of Fedspeak.
Gold price edges lower amid stronger USD, downside potential seems limited
Gold price trades with a negative bias for the second straight day on Tuesday and is pressured by a combination of factors. Traders no longer expect another outsized interest rate cut by the Federal Reserve in November, which had been a key factor behind the recent upswing in the US Treasury bond yields.
Bitcoin targets $70,000 as bullish momentum builds
Bitcoin is retesting its key resistance level, and a solid close above this threshold could fuel its ongoing rally. Meanwhile, Ethereum has successfully breached its resistance, signaling potential upward momentum, while Ripple approaches its crucial resistance barrier.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.