USDCHF Chart Technical Outlook

USDCHF Chart Technical Outlook trades in oversold conditions, set to bounce toward old 0.8820 line.
When it breaks, it breaks – after long weeks of range trading, USD/CHF fell out of range and the plunge was rapid. The pair stumbled below the old line of 0.8820, and entered oversold conditions on the 4h-chart – the RSI is close to 20. I expect a bounce toward resistance at 0.8820, which is followed by 0.8876, where it paused on the way down. Support is at the fresh low of 0.8763, followed by 0.8715, which is the 261.8% Fibonacci extension of the 0.8901-0.9017 range.
While the trend in USD/CHF – and the US Dollar in general – is down, there is room for a bounce.
It’s not only technicals, but also fundamentals. Markets expect a low US inflation figure, perhaps more than the calendar suggests. We could see a “buy the rumor, sell the fact” response – temporarily favorign the Greenback – before the downtrend resumes.

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