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.

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  


Today last price 0.9671
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 0.9673
Daily SMA20 0.9742
Daily SMA50 0.9841
Daily SMA100 0.9878
Daily SMA200 0.9914
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




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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD shakes above 1.18 after upbeat US retail sales

EUR/USD is trading above 1.18 after US retail sales missed with 1.2% in July but on top of upward revisions and alongside robust core increases. Consumer sentiment for August is awaited.


GBP/USD trades above 1.3050 ahead of more reopening steps

GBP/USD is trading above 1.3050, off the lows. The UK is set to ease some restrictions over the weekend, extending its gradual exit from lockdown. The US dollar is taking a break after gaining and ahead of retail sales. 


Gold trades with modest losses, below $1950 level

Gold traded with a mild negative bias through the early European session and was last seen hovering near the lower end of its daily range, around the $1945 region.

Gold News

Ethereum knocks out King Bitcoin

Ethereum exploded in the final hours of the American session yesterday, dealing a significant blow in its particular battle against Bitcoin. Technical analysis in previous days had shown the possibility of a bullish extension move.

Read more

WTI drops to $42 amid poor Chinese data led risk-aversion

WTI (futures on Nymex) has come under fresh selling pressure and attacks the $42 level, as risk-aversion seeps into the European session and diminishes the demand for the higher-yielding assets such as oil.

Oil News