Another great hit on US Dollar versus Swiss Franc in terms of our bullish expectations published on 26th Sept, anticipating that the pair was just retesting our lower trend line on the interday chart at 0.9214, just above our 61.8% fibo retracement level - which developed the understanding of the market psychological positioning in shape of taking another hike towards Sept 19th high at 0.9330. USDCHF after breaking above 0.9330, moved towards 0.9370 but failed to reach the weekly high  0.94732 wjhile the aforementioned hawkish move was limited by the same strong resistance zone of ours 0.9350 and 0.9420. USD/CHF has traded through but not yet closed above the 78.6% retracement at 0.9357 and we note the divergence of the daily RSI which reflects a loss of upside momentum. The pair may well consolidate in this vicinity and possibly see a small pullback.

BULLISH AND BEARISH CONDITONS/ POSSIBILITIES :

According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, the USD/CHF might have hit a relevant resistance level, at 0.9330: “USD/CHF remains bid near term but will shortly encounter the 2019-2020 downtrend at 0.9330 and recent high at 0.9333, where ideally it will again fail (…) “The market will have to head below the 55-day ma at 0.9174 to alleviate immediate upside pressure.” The relative strength index on the interday charts were trading in the overbought zone but the pair managed to recover its ground on the technical side while currently trading in between the daily pivot on one end and weekly - monthly pivot on the other, creating a state of ambiguity for now and pointing towards an extended corrective structure above the breakout zone i.e 0.9100 - 0.9170. 

USDCHF

Oct 03 2021