FxNews—The Greenback trades in a strong bull market against the Swiss Franc. The bullish trend resumed after the price broke above the August 15 high at 0.875.
As of this writing, the USD/CHF pair trades at approximately 0.880, testing the %50 Fibonacci retracement level as resistance. The daily chart below demonstrates the price, support, and resistance levels, as well as the technical indicators utilized in today’s analysis.
USDCHF Technical Analysis – 11-November-2024
Zooming into the 4-hour chart, we notice the U.S. dollar is overpriced, signaled by the Stochastic Oscillator and RSI1 14. The indicators hover in the overbought territory, recording 92 and 71 in the description, meaning USD/CHF is overbought.
Additionally, the Awesome Oscillator signals divergence, indicating the price can potentially pull back from the %50 Fibonacci retracement level, the 0.880 mark.
Overall, the technical indicators suggest that USD/CHF is a bull market but overbought; hence, the price will likely dip and test the lower support levels.
USDCHF Forecast – 11-November-2024
The bullish Fair Value Gap at approximately 0.877 provides immediate support to the current bull market. From a technical standpoint, a new consolidation phase would begin if USD/CHF declines below 0.877. If this scenario unfolds, the consolidation phase can extend to the August 15 high at 0.875.
The 0.875 critical resistance level offers retail traders and investors a decent bid to plan their strategies to join the bull market. Therefore, the 0.875 level should be monitored for bullish signals, such as hammer candlestick patterns or bullish engulfing candlestick patterns.
Please note that USD/CHF is overbought; therefore, entering a market saturated with buying pressure is not advisable.
- Support: 0.8775 / 0.875
- Resistance: 0.880 / 0.890