USD-CHF bounces down from 38.2% retracement
USD-CHF set to depreciate. Yields on 2-year Treasuries are lower, pushing interest rate hikes further away. The Fed recently mentioned that they may incorporate the lower IMF global economic growth forecast into their interest rate decisions. The Swiss National Bank is expected to raise interest rates soon.
The relative strength index has dropped just below 50 at present, indicating a formation of a downward trend. This trend should break through the 23.6% retracement, as strong support was found at 0.95516, the 38.2% retracement.
The price action should tend lower towards the 23.6% retracement at 0.95194. If the price dives further and the relative strength index keeps going towards 30, then further declines are expected, possibly past 0.94675, the weekly low.
The relative strength index has dropped just below 50 at present, indicating a formation of a downward trend. This trend should break through the 23.6% retracement, as strong support was found at 0.95516, the 38.2% retracement.
The price action should tend lower towards the 23.6% retracement at 0.95194. If the price dives further and the relative strength index keeps going towards 30, then further declines are expected, possibly past 0.94675, the weekly low.