Sasha Singh
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USDCHF : Rising Wedge Giving Bearish Signal

US Dollar is gaining against its counterparts today ahead of the New Home Sales data coming at 10:00 AM EDT. On the 4 hour chart, USDCHF was testing the resistance at .8953 earlier which it broke today ahead of the Housing report.

(USDCHF:4 Hour Chart)

 But if we look closely it is giving a bearish signal as we see a rising wedge formation on the daily chart below.

(USDCHF : Daily Chart)

Also in the stochastic oscillator we can see that the pair is currently trading in the overbought zone. So gains currently seems limited to me. It might be an indication that the pair is going to move down breaking the support trend line of the falling wedge and find support from the 100 day SMA.