USD/CHF: RSI Indicates Sell Signal

USD/CHF initiates a series of lower highs and lows as it continues to pull back from a fresh yearly high (0.8886), with the Relative Strength Index (RSI) indicating a sell signal as it falls below 70.

USD/CHF Rate Outlook

USD/CHF is under pressure following the failed attempts to break/close above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) region, with a breach below the 0.8770 (23.6% Fibonacci retracement) to 0.8800 (50% Fibonacci extension) area raising the scope for a move towards 0.8700 (61.8% Fibonacci extension) as the RSI falls back from overbought territory.

Nevertheless, the recent weakness in USD/CHF may end up short lived as the 50-Day SMA (0.8638) no longer reflects a negative slope but need a break/close above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) region to open up the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) area.