USD/CHF Amazing Sell-Off

USD/CHF plunged today as the DXY registered an aggressive sell-off. The pair has reached strong resistance, so DXY’s drop signaled a potential correction on this pair.

The US Dollar Index has shown some overbought signs in the short term. Its bearish divergence signaled that it could slip lower again. It seems that the USD bulls were disappointed after the FOMC Meeting Minutes, or yesterday’s report was already included in the price action.

USD/CHF H4 Chart Technical Analysis!

Our position in USD/CHF is still open after closing ⅔. The pair has found resistance at the R1 (0.9266) and right above the 61.8% retracement level. The aggressive breakdown through the weekly pivot point (0.9213) signaled strong sellers and a potential downside continuation in the short term.

Technically, the next downside target is seen around the weekly S1 (0.9152) and at the ascending pitchfork’s lower median line (lml).

Conclusion!

USD/CHF has signaled potential exhaustion after failing to come back to reach and retest the ascending pitchfork’s upper median line (uml). DXY’s drop forced the pair to drop as well, we have a strong positive correlation between these two (currency pair/index).

 

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