USD/CHF appears to be carving a bearish outside-day (engulfing) candle after registering a fresh yearly high (0.9096), and the Relative Strength Index (RSI) may indicate a textbook sell signal as it struggles to hold above 70.
USD/CHF Rate Outlook
USD/CHF seems to be reversing ahead of the November high (0.9113) as it fails to extend the series of higher highs and lows from the start of the week, and failure to hold above the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) area may lead to a test of the weekly low (0.9006).
Next region of interest comes in around 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension), with a break of trendline support opening up the 0.8770 (61.8% Fibonacci extension) to 0.8810 (50% Fibonacci extension).
Nevertheless, USD/CHF may continue to exhibit a bullish trend if it continues to track the positive slope in the 50-Day SMA (0.8823), with a breach above the November high (0.9113) opening up 0.9180 (23.6% Fibonacci extension).
--- Written by David Song, Strategist at FOREX.com
USD/CHF Rate Outlook
USD/CHF seems to be reversing ahead of the November high (0.9113) as it fails to extend the series of higher highs and lows from the start of the week, and failure to hold above the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) area may lead to a test of the weekly low (0.9006).
Next region of interest comes in around 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension), with a break of trendline support opening up the 0.8770 (61.8% Fibonacci extension) to 0.8810 (50% Fibonacci extension).
Nevertheless, USD/CHF may continue to exhibit a bullish trend if it continues to track the positive slope in the 50-Day SMA (0.8823), with a breach above the November high (0.9113) opening up 0.9180 (23.6% Fibonacci extension).
--- Written by David Song, Strategist at FOREX.com