USD/CHF transitions but still has downtrend line resistance to contend with

The downtrend and bearish Directional Bias on the daily USD/CHF has completed a transition into a sideways, consolidation phase…but bears don’t lose faith and bulls, don’t get too excited; There is still downtrend line resistance and 0.9300 to contend with.

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Daily USD/CHF chart with Falling Wedge chart pattern alert courtesy of Autochartist

The bullishness is not without merit but does not yet have confirmation of a breakout through the resistance of the pattern. Accompanying this move higher through the upper line of the Falling Wedge should be a positive MACD Histogram reading. This entry – if confirmed – would be a pattern reversal.

The other consideration must be the length of this established downtrend and the fact that the sentiment can be consider near-term neutral but longer-term bearish as the GRaB candles have yet to even plot on green (bullish) candle.

The downtrend line of the Falling Wedge could be shorted and consider using 0.9300 has the level at which the sentiment would shift to bullish.