USDCHFFalling wedge formation (or triangle):
The upper boundary is the resistance line connecting the lower highs.
The lower boundary is the support line running along the local lows.
The wedge is narrowing - a classic sign of potential volatility compression before the exit.
Three touches of the lower boundary (orange circles):
This confirms the strength of the support level.
Repeated rebounds from the same level increase the probability of its upward breakout.
Possible scenario (yellow arrows):
Another upward rebound is expected within the wedge.
If there is a breakout of the upper boundary of the wedge with momentum - this is a confirmation of the bullish signal
Forecast:
Base scenario: wedge breakout upwards and growth.
Alternative risk: if the price breaks the support level downwards
(where there were 3 touches), this will be the invalidation of the pattern - a sharp collapse is possible.
