USDCHF Pair – A Bear’s Dream?
The USDCHF pair is looking like a bear’s dream with the RSI hovering around the oversold zone, currently valued at 33. The MFI is also suggesting a downward trend, since it was at 64 only 10 days ago, compared to 36 today. Technical’s suggest that there is much downside left until 0.992 (Stop Loss: 0.995) in the coming week for bears to play around with. That level is a strong support, since it hasn’t been broker since July ‘08.
The pair could bounce back from that level giving bulls some relief. Bollinger bands are also showing a bearish breakout after consolidating briefly in the first week of October. The 14 day MA has also cut the 21 day MA from above, and the pair is currently trading way below that level, having crossed the lower Bollinger band twice.
The pair may also extend its downside fall as US corporate results are coming out to be much better than anticipated, giving the US dollar much needed support.
| Support | 1.0105 | 1.0075 | 1.0055 |
| Resistance | 1.0136 | 1.0164 | 1.0171 |
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