FxWirePro: USD/CHF major trend edges northwards in rising wedge baseline, rallies likely to extend on bullish SMA crossover

USDCHF major trend edges higher testing support at rising wedge baseline (monthly chart).

If you look at the daily and intraday charts, rallies seem to be extending further on bullish SMA crossover (refer 4H and daily charts). Current prices have gone beyond DMAs on dailies.

As stated in our previous write up, USDCHF bears ensure persistent range in the major trend.

On the contrary, if it attempts to break strong support at rising wedge baseline at 0.9566 levels, expect more slumps as MACD still signal most likely extension of slumps.

This bearish sentiment is backed by the momentum signaled by leading oscillators.

Both RSI and stochastic curves are converging downwards to the prices slumps.

You could also observe the shrinking buying momentum as the leading indicators on this timeframe, while the same leading oscillators are evidencing bearish convergence to the considerable price declines on this timeframe.

While for short-term bullish trend, MACD's bullish crossover is substantiating the uptrend is likely to prolong further (refer daily plotting). 

Thereby, we conclude stating USDCHF major trend continues to inch higher in rising wedge formation – Use mid-month futures to long hedge.

Hence, at spot ref: 0.9683 we advocate arresting bullish risks by initiating longs in futures contracts of mid-month expiries by keeping the strict stop loss at around 0.9566 levels.

While the FxWirePro currency strength index for the USD has been neutral by flashing a shy above +4, while CHF has also been neutral by flashing +13.

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