Usdchf In A Bullish Trend

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Usdchf In A Bullish Trend

Usd/Chf In A Medium Term Bullish Trend

quick look at the chart of USD/CHF shows that it is in a short and medium-term bullish trend. The USD/CHF pair is forming higher highs & higher lows, a classic example of a bullish trend.

Given that the traders follow the old adage of trend is your friend, it seems that the US Dollar is really shining against the CHF.

The nearest bullish target for the USD/CHF is around 0.8680, which is also the 100% fib level from an earlier range. The USD/CHF has already claimed the 61.8% fib level around the 0.8627. Now, all the eyes are on 0.8680, followed by the round level of 0.8700.

Usd/Chf: Rsi Shows Overbought Conditions

However, the one thing that could hinder this move higher is the RSI. The RSI indicator on the USD/CHF chart shows that it is not delving into the overbought area.

So, if the trading day closes with the RSI still in the overbought territory, it will make it difficult for some traders to hold their long positions. In fact, many traders of USD/CHF might even end their long positions and get out of the market.

At the same time, the Monday opening shows a little gap... An unofficial in the market is that gaps are always closed, even if it takes a long time. So, if the USD/CHF moves lower to close the gap, it wouldn't be too much of a surprise.

From the current technical position of the USD/CHF, it seems that the CHF is on the back foot. However, we are only weeks away from the US elections, which means there is a lot of volatility in the USD/CHF.

If the US Dollar turns negative in the coming weeks due to US elections, it could mean a turnaround time for the CHF. In that case, the USD/CHF will start to move lower and help the CHF to reclaim some of its lost ground.

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