USD/CHF Forecast: RSI Divergence Emerges
USD/CHF cleared the January low (0.8401) earlier this month to register a fresh yearly low (0.8375), but the Relative Strength Index (RSI) appears to be diverging with price as it holds above 30.
USD/CHF Rate Outlook
The recent rebound in USD/CHF may end up short-lived as it appears to be tracking the negative slope in the 50-Day SMA (0.8700), with a breach below the 0.8350 (100% Fibonacci extension) to 0.8360 (100% Fibonacci extension) region opening up the December low (0.8333).
Next area of interest comes in around 0.8080 (23.6% Fibonacci retracement) but the RSI may show the bearish momentum abating should it continue to move away from oversold territory.
In turn, USD/CHF may retrace the decline from the monthly high (0.8538) should it struggle to break/close below the 0.8350 (100% Fibonacci extension) to 0.8360 (100% Fibonacci extension) region but need a move above the 0.8550 (78.6% Fibonacci extension) to 0.8590 (78.6% Fibonacci extension) area to bring 0.8700 (61.8% Fibonacci extension) on the radar.
--- Written by David Song, Strategist at FOREX.com
USD/CHF Rate Outlook
The recent rebound in USD/CHF may end up short-lived as it appears to be tracking the negative slope in the 50-Day SMA (0.8700), with a breach below the 0.8350 (100% Fibonacci extension) to 0.8360 (100% Fibonacci extension) region opening up the December low (0.8333).
Next area of interest comes in around 0.8080 (23.6% Fibonacci retracement) but the RSI may show the bearish momentum abating should it continue to move away from oversold territory.
In turn, USD/CHF may retrace the decline from the monthly high (0.8538) should it struggle to break/close below the 0.8350 (100% Fibonacci extension) to 0.8360 (100% Fibonacci extension) region but need a move above the 0.8550 (78.6% Fibonacci extension) to 0.8590 (78.6% Fibonacci extension) area to bring 0.8700 (61.8% Fibonacci extension) on the radar.
--- Written by David Song, Strategist at FOREX.com
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.