I have drawn the main trend lines of the USD/CHF movements for the past two months and they support the logical expectation that the pair will begin moving to the downside.
There is a breakout below the wedge from 0.98694 to 1.01689, but the pair is in no hurry with the move to the downside, even though its limit is 248 pips.
In my opinion, it is quite possible for the situation to remain without much further development until tomorrow, when FED will announce a possible change in the Federal Funds Rate. There are expectations that the rate will be hiked, and that could lead to a change in the expectations for a move to the downside.
However, the market sometimes reacts oddly to such news and it is still not clear whether that will be the case tomorrow. After the possible news for a rate hike it could jump to the upside and then to continue falling.
There are 24 hours until said news comes out, so we will soon find out which scenario the market will choose.
Falling wedge is a good sign for bulls, so it might push back up.
ReplyDeleteThat's good to know, thank you.
ReplyDeleteIt seems still have room on the downside.
ReplyDeleteLet’s see how it keeps going.
ReplyDeleteVery accurate prediction!
ReplyDeleteInteresting to see how this develops.
ReplyDeleteGood insight.
ReplyDeleteGood post!
ReplyDeleteExcellent Analysis! Thanks.
ReplyDelete