USD/CHF – Time to Catch The Retracement
Arslan Butt • 1 min read
Considering the dovish FOMC and weakness in the U.S. dollar, the USD/CHF has plunged dramatically and is now stuck in the oversold zones. Now, we have a chance to catch few easy pips. Are you ready?
Yesterday, the Federal Reserve's FOMC meeting minutes were unsurprisingly dovish, causing some serious weakness in the Buck. Due to the weakness, most of the dollar pairs are either oversold or overbought, including USD/CHF.
USDCHF – Hourly Chart- Fibonacci Retracement
Looking at the leading indicator Stochastic RSI, the pair is massively oversold at 20. We can see a spinning top & couple of doji candles near $0.9640, signaling the weaker position of sellers.
Now, the pair is likely to go for 23.6% Fibonacci retracement at $0.9665 and 38.2% retracement at $0.9685.
USD/CHF Trade Idea
As mentioned above, the bulls should enter the market near $0.9640 to target $0.9685 with 20 pips stop below the entry price. Good luck!