USD/CHF Price Analysis: Bounces from 3.5-week lows
|- USD/CHF's recovery from 3.5-week lows could be extended further.
- Gains will likely be short-lived, as the daily chart is signaling strong bearish sentiment.
USD/CHF is currently trading at 0.9693, representing a 0.15% gain on the day, having hit a low of 0.9674 in early Asia. That level was last seen on Feb. 4.
The recovery from 3.5-week lows has confirmed bullish divergence of the relative strength index on the hourly chart. The bullish divergence indicates seller exhaustion and could power further gains in the pair.
Gains, however, will likely be short-lived, as Thursday's big red marubozu candle indicates the bearish sentiment is quite strong. The 14-day RSI is also reporting bearish conditions with a below-50 print.
A violation at the session low of 0.9674 would expose support at 0.9629 (Feb. 3 low). on the higher side, a close above 0.9771 (Thursday's high) is needed to invalidate the bearish outlook on the daily chart.
Daily chart
Trend: Bearish
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.