UsdChf - Short

With the recent FED announcements and the probability of continued high inflation and high-interest rates, the market sentiment has shifted towards moving away from stocks, gold, and other currencies and into the US dollar. However, the Swiss Franc continues to maintain its safe-haven status, and with its strong financial structure and economy, it is likely to remain in focus for Swiss investors for some time. Towards the end of the year, we have an expectation of another interest rate hike from the FED. Until this expectation becomes clearer, we may see some strengthening in the Swiss Franc. If this expectation solidifies by the end of next month, we might witness a second movement where the US dollar strengthens against the CHF.

From a technical perspective, the price, having completed Elliott's 5th wave, appears to have completed the expected uptrend and is now preparing for a strong corrective decline. On the D1 chart, we see that while the 21-period RSI gives an overbought signal, the price is facing downward pressure from the last Fibonacci retracement level, which is 76.4%.