USD/CHF - can price remain within the daily falling wedge?

USD/CHF continued to offer little hope for USD bulls as prices continued their bearish trajectory last week. On last weeks ‘Coffee & Forex Weekly’ we mentioned that price was at the base of a daily timeframe falling wedge pattern. Last week saw price either side of this lower boundary, keeping traders guessing as to the next move. Whilst falling below on Thursday, prices rallied again on Friday, retaining within the falling wedge structure. However, more significantly price closed out the week below the support at 0.8910.

Into the coming week we will again be looking at the relationship from the falling wedge pattern and the reaction of price with the 0.8910 level. As we have now experienced a daily close below 0.8910 it would suggest that the pair is ready to make its next move down towards the support at 0.8715.

However, with the falling wedge pattern still in play, we can not rule out a return of price back towards the upper boundary and the resistance at 0.9035.