Friday, 19 January 2018

USD/CHF Fresh montly low with RSI divergence

The notable US dollar’s weakness drove the USD/CHF pair under huge selling pressure today and the pair pinned a fresh four month low at 0.9535. Earlier in the day the pair tested the support at 0.9550 that was last visited in September 2017 and bears were seduced by lower levels from late 2016.
What comes to be more interesting is that while the bears entertained around the daily low, the RSI was marking higher lows. The RSI divergence is clearly seen on the four hour time frame at the time the price was marking lower lows. The pair retreated later to higher levels with current market price 0.9622, but we should be cautious with this quick bullish reversal as the 0.9665 resistance (double top earlier this week) comes into play. 


No comments:

Post a Comment