CHF/USD Trade Setup Analysis – Falling Wedge Breakout Toward 1.2180
🕒 Timeframe: 30-Minute
📈 Pair: Swiss Franc / U.S. Dollar (CHF/USD)
📅 Date: April 30, 2025
📌 Chart Type: Candlestick
Technical Overview:
This chart displays a well-structured bullish reversal setup forming through a falling wedge pattern following a period of horizontal consolidation.
🔍 1. Market Context
Prior to the wedge formation, the price showed consolidation within a tight horizontal range between support at 1.2095 and resistance at 1.2152. This sideways movement signals indecision, often a prelude to a breakout.
As price began compressing into lower highs and lower lows, a falling wedge pattern emerged. Falling wedges are typically bullish reversal patterns, particularly when they appear in a downtrend or during consolidation like in this case.
🔺 2. Pattern Breakdown – Falling Wedge
Upper trendline (resistance): Connects a series of descending highs.
Lower trendline (support): Connects descending lows, converging toward the apex.
Breakout Point: The price has broken above the wedge resistance, confirming a bullish breakout.
This breakout indicates a shift in market sentiment from selling pressure to buying interest.
🎯 3. Trade Setup
Entry Point: Around the breakout area (1.2126–1.2130), post-confirmation of the wedge breakout.
Take Profit (TP): 1.2180 – a logical target just above the previous horizontal resistance and a psychological level.
Stop Loss (SL): 1.2095 – placed just below the wedge’s lower support boundary, providing protection against false breakouts.
The setup offers a favorable risk-reward ratio with well-defined invalidation.
📌 Key Technical Levels
Resistance: 1.2152 (breakout level), 1.2180 (target zone)
Support: 1.2095 (stop-loss level and prior demand zone)
✅ Trade Rationale
A confirmed breakout of a falling wedge pattern
Bullish price action post-breakout
Clear horizontal support/resistance structure
Defined entry, target, and stop loss for disciplined risk management
⚠️ Risk Management
Traders should:
Wait for a bullish candle close above the wedge
Use position sizing aligned with their risk tolerance
Monitor macroeconomic news that may impact USD or CHF volatility
📌 Conclusion:
This CHF/USD setup is a textbook example of a falling wedge breakout with upside potential toward 1.2180. With strong technical confluence and clear structure, it presents an attractive long opportunity with disciplined risk control.
🕒 Timeframe: 30-Minute
📈 Pair: Swiss Franc / U.S. Dollar (CHF/USD)
📅 Date: April 30, 2025
📌 Chart Type: Candlestick
Technical Overview:
This chart displays a well-structured bullish reversal setup forming through a falling wedge pattern following a period of horizontal consolidation.
🔍 1. Market Context
Prior to the wedge formation, the price showed consolidation within a tight horizontal range between support at 1.2095 and resistance at 1.2152. This sideways movement signals indecision, often a prelude to a breakout.
As price began compressing into lower highs and lower lows, a falling wedge pattern emerged. Falling wedges are typically bullish reversal patterns, particularly when they appear in a downtrend or during consolidation like in this case.
🔺 2. Pattern Breakdown – Falling Wedge
Upper trendline (resistance): Connects a series of descending highs.
Lower trendline (support): Connects descending lows, converging toward the apex.
Breakout Point: The price has broken above the wedge resistance, confirming a bullish breakout.
This breakout indicates a shift in market sentiment from selling pressure to buying interest.
🎯 3. Trade Setup
Entry Point: Around the breakout area (1.2126–1.2130), post-confirmation of the wedge breakout.
Take Profit (TP): 1.2180 – a logical target just above the previous horizontal resistance and a psychological level.
Stop Loss (SL): 1.2095 – placed just below the wedge’s lower support boundary, providing protection against false breakouts.
The setup offers a favorable risk-reward ratio with well-defined invalidation.
📌 Key Technical Levels
Resistance: 1.2152 (breakout level), 1.2180 (target zone)
Support: 1.2095 (stop-loss level and prior demand zone)
✅ Trade Rationale
A confirmed breakout of a falling wedge pattern
Bullish price action post-breakout
Clear horizontal support/resistance structure
Defined entry, target, and stop loss for disciplined risk management
⚠️ Risk Management
Traders should:
Wait for a bullish candle close above the wedge
Use position sizing aligned with their risk tolerance
Monitor macroeconomic news that may impact USD or CHF volatility
📌 Conclusion:
This CHF/USD setup is a textbook example of a falling wedge breakout with upside potential toward 1.2180. With strong technical confluence and clear structure, it presents an attractive long opportunity with disciplined risk control.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.