USD/CHF Susceptible to RSI Divergence
USD/CHF consolidates after clearing the February high (0.8886), while the Relative Strength Index (RSI) appears to be diverging with price as the oscillator reverses ahead of overbought territory.
USD/CHF Rate Outlook
Unlike the developments from last month, the RSI holds below 70 even though USD/CHF registered a fresh yearly high (0.8893) at the start of March, and the oscillator may show the bullish momentum should it move away from overbought territory.
A break/close below the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region may push USD/CHF towards 0.8700 (61.8% Fibonacci extension), with a move below the 50-Day SMA (0.8670) bringing the February low (0.8554) on the radar.
However, USD/CHF may stage further attempts to break above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) area should it track the positive slope in the moving average, with a break/close above the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) region opening up the November high (0.9113).
--- Written by David Song, Strategist
USD/CHF Rate Outlook
Unlike the developments from last month, the RSI holds below 70 even though USD/CHF registered a fresh yearly high (0.8893) at the start of March, and the oscillator may show the bullish momentum should it move away from overbought territory.
A break/close below the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region may push USD/CHF towards 0.8700 (61.8% Fibonacci extension), with a move below the 50-Day SMA (0.8670) bringing the February low (0.8554) on the radar.
However, USD/CHF may stage further attempts to break above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) area should it track the positive slope in the moving average, with a break/close above the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) region opening up the November high (0.9113).
--- Written by David Song, Strategist