USD/CHF May Rise With Falling Wedge Breakout in Play
USD/CHF has broken above a bullish Falling Wedge chart pattern, confirming the breakout. This also followed positive RSI divergence, showing that downside momentum was fading.
This may open the door to resuming the dominant uptrend from the first quarter, in line with a fundamental view that the Fed may be less dovish than the SNB in the long run.
Near-term risks include the 200-period SMA, which may reinstate a downside focus. A softer-than-expected US non-farm payrolls report also risks rekindling Swiss Franc strength against the US Dollar.
Clearing the May low may open the door to resuming the downtrend since April. Otherwise, the pair may make its way towards May highs.
USDCHF
This may open the door to resuming the dominant uptrend from the first quarter, in line with a fundamental view that the Fed may be less dovish than the SNB in the long run.
Near-term risks include the 200-period SMA, which may reinstate a downside focus. A softer-than-expected US non-farm payrolls report also risks rekindling Swiss Franc strength against the US Dollar.
Clearing the May low may open the door to resuming the downtrend since April. Otherwise, the pair may make its way towards May highs.
USDCHF
