USDCHF Hits 2-Week Low; Remains Bullish in Medium Term

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USDCHF extended Tuesday’s losses and is currently trading not far above a two-week low of 0.9952 hit earlier on Wednesday.

The RSI turned lower after entering overbought territory above 70. At the moment, it continues to head lower in support of a negative short-term picture. The bias in the very-short-term also looks bearish as indicated by the stochastics: the %K and %D lines are negatively aligned and are both moving further down.

Further declines may meet support around 0.9925, this being a congested area between mid-April to late August that also halted advances in the beginning of October. Not far below, support could occur around the current levels of the 100- and 50-day moving average lines at 0.9876 and 0.9838 respectively. Even lower, early June’s bottom of 0.9787 would be eyed.

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On the upside, resistance could occur around the parity level (1.00) that that may be of psychological significance. Higher still, the one-and-a-half-year zenith of 1.0094 would increasingly come into scope; not far below this point lie a couple of other peaks from previous months as well.

The medium-term picture continues to look predominantly bullish, with trading activity taking place above both the 50- and 100-day MAs.

Overall, the short-term outlook appears mostly bearish, and the medium-term one remains bullish for the most part.