Baxia Markets
By
July 21, 2021

Will USDCHF Trade Down?

technical analysis top header -01

 

The big spike in the price on Jun. 16 has shocked a lot of people. An increase was expected, but we did not expect this much. During the two days, the price had risen 2.95% to 0.924. The price stayed at this high level for a while. We can see the price twists with the Ichimoku cloud, and the price has an upward trend; however, the ranges of waves have been shrinking. These waves are building a rising wedge pattern. 

 

 

As we know, the rising wedge pattern was a bearish signal. Will the price go down after the rising wedge pattern finishes? The Bollinger Bands have shrunk, which means a breakout is on the way here. Also, the Ichimoku cloud stops here, so if the price breaks down, the Ichimoku will create a stable downward trend, a bearish signal for us. 

 

usdchf0721

 

Standard deviation and ATR stay at a low level; the price line fluctuates less towards the end of the pattern, so now, the price has already reached the end of the rising wedge.

 

We love to hear new ideas from traders and want to know what you think! 

 

If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.

 

Open Live Account  

 

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

 

Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 

Subscribe by Email