USD/CHF Price Analysis: Overbought oscillators seek a pullback to near 1.0000
|- A pullback to near 1.0000 looks likely as oscillators have turned extremely overbought.
- The trendline placed from 0.9710 will act as major support for the counter.
- The 20- and 50-EMAs are scaling higher, which cushion the greenback bulls.
The USD/CHF pair has witnessed minor selling pressure after consolidating in a narrow range of 1.0033-1.0049 to a low of 1.0022 in the early Asian session. On a broader note, the asset has remained tightened in the grip of bulls for the past few weeks.
The upside break of the consolidation phase plotted in a range of 0.9873-0.9977 on an hourly scale is demanding a minor correction to test the strength of the greenback bulls. The pair is balancing above the psychological resistance of 1.0000 and a test of the same will add more buyers for resuming the upside rally. The trendline placed from May 5 low at 0.9710, adjoining the weekly lows at 0.9874, will continue to act as major support for the counter.
The 20- and 50-period Exponential Moving Averages (EMAs) at 0.9997 and 0.9873 respectively add to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which usually signals further upside. However, an overbought situation cannot be ruled out.
Should the asset correct to near the psychological support of 1.0000, an initiative buying interest will drive the asset higher towards Thursday’s high at 1.0050. A breach of the latter will send the asset towards a fresh three-year high at 1.0123, which is a little over than 17 May 2019 high at 1.0122
Alternatively, the Swiss franc bulls could regain control if the asset drops below Thursday’s low at 0.9932. This will drag the asset towards Wednesday’s low at 0.9873, followed by May 6 low at 0.9827.
USD/CHF hourly chart
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.