Baxia Markets
July 21, 2021

Will USDCHF Trade Down?

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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. 




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.


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