EUR/CHF Breaks Out of Falling Wedge

This week's currency trade indicated a potential rise from short term lows in the EUR/CHF, with CALL options taken at 1.2250. We did see some minor downside violation of that level but prices quickly rebounded ahead of 1.22 (which was the real level the trade was based on). But prices are now trading firmly above 1.2250 and are in a strong position to close in the money for the week. Chart patterns supporting this assertion can be seen in the fact that the pair broke out of its falling wedge/downtrend channel formation and are now pressuring the 100/200 period EMAs on the 4H charts. A clear break of these moving averages was my real target for the trade, so if we can just see some hourly closes above these levels, more upside follow-through can be expected.

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