Saturday , November 16 2024
Home / SNB & CHF / USD/CHF Price Forecast: Reaches overbought levels

USD/CHF Price Forecast: Reaches overbought levels

Summary:
USD/CHF is in a strong uptrend which keeps making higher highs.  However it has reached overbought levels according to the RSI momentum indicator  This means bulls should be aware of the increased risk of pullbacks.  USD/CHF continues rising in its established uptrend but it has now reached overbought levels (above 70) according to the Relative Strength Index (RSI) momentum indicator. When this occurs it advises long-holders not to add to their positions because of the increased risk of a pullback developing. USD/CHF Daily Chart  According to technical analysis theory “the trend is your friend” which means it is better to trade in the direction of the dominant trend. As such, the odds favor more upside for USD/CHF. The RSI could continue

Topics:
Joaquin Monfort considers the following as important: , , ,

This could be interesting, too:

Artis Shepherd writes Caplan’s Errors on the UAE and Open Borders

Ryan McMaken writes We’re Already on Track for a Trillion Deficit this Year

Jane L. Johnson writes It’s Greek to Us: Angry Generation Z Women Reenact “Lysistrata” Post-Election

Michael Njoku writes Totalitarianism Begins With A Denial of Economics

  • USD/CHF is in a strong uptrend which keeps making higher highs. 
  • However it has reached overbought levels according to the RSI momentum indicator 
  • This means bulls should be aware of the increased risk of pullbacks. 

USD/CHF continues rising in its established uptrend but it has now reached overbought levels (above 70) according to the Relative Strength Index (RSI) momentum indicator. When this occurs it advises long-holders not to add to their positions because of the increased risk of a pullback developing.

USD/CHF Daily Chart 

USD/CHF Price Forecast: Reaches overbought levels

According to technical analysis theory “the trend is your friend” which means it is better to trade in the direction of the dominant trend. As such, the odds favor more upside for USD/CHF. The RSI could continue to remain overbought or fall back into neutral territory first as the price pulls back. 

The pair has now surpassed the target at 0.8873 (July 30 swing high) and is on its way to the next target at 0.9050 (July 2 swing high). Another possible target is 0.9000 due to its significance as a round-number and psychological level.  


Tags: ,

Leave a Reply

Your email address will not be published. Required fields are marked *