USD/CHF Daily Loses 34EMA Angle but Not Chart Pattern Resistance

The daily chart which I discussed earlier has begun a slow transition out of the “four to six o’clock” downtrending angle which had set up a swing short. This trend following play is not necessarily invalidated by the market trend transition but additional resistance levels will offer insight into where the current push higher may exhaust and therefore also where the bears will step in.

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The daily USD/CHF has both a large Channel Down and Falling Wedge chart pattern which offers alternate resistance levels to consider as the 34EMA Wave begins to move sideways. Chart pattern alert courtesy of Autochartist.

The transition in the 34EMA Wave is no reason to get bullish. It simply means that as the daily undergoes a transition, the sentiment and momentum have shifted to a more neutral stance. Remember that the trend is overall down and that green GRaB candles have not appeared which means that there is no (daily) bullish sentiment or momentum. It’s likely that this is merely a more pronounced bounce and will still be sold into. The key for me will be seeing if price action respects the resistance of the chart pattern downtrend lines.