Usdchf Retreats From Highs

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Usdchf Retreats From Highs

Usd/Chf Retreats From 0.8642

USD/CHF was making higher highs and reached a high of 0.8642 on Monday. However, the pair now seems to be retreating from its high, but experts believe that this correction will be temporary.

It seems to be a technical correction before the USD/CHF can resume its uptrend once again. If we look at the top, the next resistance is seen near 0.8650, followed by the key handles at 0.8670 and 0.8700.

Usd/Chf Next Target At 0.8680

It is also worth mentioning that the 0.8680 is the 100% fib level and thus holds importance for the US Dollar bulls. As for the 61.8% Fibonacci level, it is already under the grasp of the bulls, as it was located around 0.8627.

Another thing that confirms the bullish bias in the USD/CHF is the RSI, which has moved out of the overbought area. That's a sign that CHF is on the back foot against the US Dollar. However, it is also a sign of caution as the bullish momentum is now slowly fading away from the USD/CHF.

During Monday's session, a gap was made in the USD/CHF, and now there's a risk that the pair will move lower to fill the gap. If it happens, a correction to 0.8574 will be on the cards, followed by the support around 0.8550.

But before the USD/CHF can move back to fill the gap, it needs to first break the support around 0.8541. Once that happens, it will also signal a bearish trend has started in the USD/CHF.

Right now, the USD/CHF is under the influence of a broader US Dollar strength. In simple words, it has less to do with the CHF weakness and more to do with the USD strength.

Up ahead, the level is around 0.8700 seems to be an important resistance level. Beyond that, the levels such as 0.8750, 0.8800, and then the 0.8900 are key resistance zones. Over all, USD/CHF appears to be positive as confirmed by the RSI and the MACD.

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