The USD/CHF pair is currently in a short-term downtrend, moving lower towards a crucial support level. The Relative Strength Index (RSI) shows that the pair is oversold, suggesting a potential pullback in the near future.
Since reaching a high on August 15, USD/CHF has been forming a series of lower peaks and troughs, indicating a downward trend. The next significant target for the pair is at 0.8433, the key low from August 5.
USD/CHF 4-hour Chart
The RSI, a momentum indicator, is currently in the oversold zone, signaling a potential reversal. A buy signal would be triggered if the RSI moves out of oversold territory and returns to neutral levels (above 30).
If USD/CHF breaks below the August 5 low, the downtrend is likely to continue towards the next target at 0.8334. A decisive break would involve a significant downward move, such as a long red candlestick closing near its low or three consecutive red candles breaking below the support level.
Overall, investors should monitor the RSI for potential signals of a pullback, while keeping a close eye on key support levels for USD/CHF. Understanding these technical indicators can help traders make informed decisions and navigate the market effectively.