The currency pair registered some volatility today, but seems undecided. Right now will be better to stay away from this pair because we don’t have any trading opportunity, but I really hope that we’ll have one very soon as the rate is located near important resistance and support levels. Technically, it shows some exhaustion signs on the Daily chart, but still maintains a bullish perspective on the Daily chart because is located above a very important dynamic support.  Price has developed a Rising Wedge pattern, but this is far from being confirmed as the CHF remains sluggish on the short term versus all its rivals.

The Swiss Franc increased in the second part of the day and has managed to erase the morning losses. The Switzerland Unemployment Rate remained steady at 3.1% in October, matching expectations and the 3.1% rate from the previous reporting period.  The European currency received support from the German Trade Balance, which increased unexpectedly, from 21.3B to 21.8B, even if the traders have expected to see a drop to 21.0B.

We’ll see what will happen later after the SNB Chairman Jordan will speak in Frankfurt, but i don’t believe that will have a significant impact.

You can see that I’ve drawn a Rising Wedge pattern on the EUR/CHF, the rate retested the upside line of this pattern and now is somehow expected to reach the downside line of this pattern. We have a major support at the upper median line (uml) of the minor ascending pitchfork, so only a valid breakdown below this line will confirm a larger drop and will confirm the Rising Wedge as well.

Price seems overbought after the failure to approach and reach the sixth warning line (wl6) of the former descending pitchfork. A further increase will appear only after a valid breakout above the wl6. It could climb above this upside obstacle if the rate will continue to stay above the upper median line (uml) without touching it.