USD/CHF – Time to Catch The Retracement

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. N


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 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!

 
ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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