USD/CHF Price Analysis: Minor bounce likely on indicator divergence

USD/CHF's hourly chart shows a bullish RSI divergence.
The overall bias remains bearish with the pair holding well below 0.9762.

Omkar Godbole FXStreet Contributor

While the path of least resistance for the USD/CHF pair is to the downside, a break lower toward 0.96 could be preceded by a minor bounce, as the hourly chart indicator is reporting a bullish divergence of the relative strength index (RSI).

A bullish divergence occurs when a lower low on the price chart is accompanied by a higher low on the indicator.

The divergence seen on the hourly chart indicates scope for a bounce to the descending trendline resistance at 0.9688. A violation there could bring additional gains above 0.97.

A rejection at the trendline hurdle will yield a sustained move below Tuesday's low of 0.9665.

The overall bias will remain bearish as long as the spot remains below 0.9762, keeping lower highs setup on the daily chart intact.

Hourly chart

Trend: Minor bounce likely

Technical levels

USD/CHF

Overview
Today last price	0.9671
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	0.9673

Trends
Daily SMA20	0.9742
Daily SMA50	0.9841
Daily SMA100	0.9878
Daily SMA200	0.9914

Levels
Previous Daily High	0.9715
Previous Daily Low	0.9665
Previous Weekly High	0.9763
Previous Weekly Low	0.9665
Previous Monthly High	1.0009
Previous Monthly Low	0.9646
Daily Fibonacci 38.2%	0.9684
Daily Fibonacci 61.8%	0.9696
Daily Pivot Point S1	0.9654
Daily Pivot Point S2	0.9634
Daily Pivot Point S3	0.9604
Daily Pivot Point R1	0.9704
Daily Pivot Point R2	0.9734
Daily Pivot Point R3	0.9754

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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