USD/CHF Breaks Out to Clear November High
USD/CHF clears the November high (0.9113) to push the Relative Strength Index (RSI) back into overbought territory.
USD/CHF Rate Outlook
USD/CHF breaks above the opening range for April after defending the monthly low (0.8998) earlier this week, with a break/close above 0.9180 (23.6% Fibonacci extension) opening up the October high (0.9245).
The move above 70 in the RSI is likely to be accompanied by a further advance in USD/CHF like the price action from last month, and the exchange rate may continue to exhibit a bullish trend as it appears to be tracking the positive slope in the 50-Day SMA (0.86340).
However, lack of momentum to keep the RSI in overbought territory may lead to a near-term pullback in USD/CHF, with a move below the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) region opening up the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) area.
--- Written by David Song, Strategist at FOREX.com
USD/CHF Rate Outlook
USD/CHF breaks above the opening range for April after defending the monthly low (0.8998) earlier this week, with a break/close above 0.9180 (23.6% Fibonacci extension) opening up the October high (0.9245).
The move above 70 in the RSI is likely to be accompanied by a further advance in USD/CHF like the price action from last month, and the exchange rate may continue to exhibit a bullish trend as it appears to be tracking the positive slope in the 50-Day SMA (0.86340).
However, lack of momentum to keep the RSI in overbought territory may lead to a near-term pullback in USD/CHF, with a move below the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) region opening up the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) area.
--- Written by David Song, Strategist at FOREX.com