USD/CHF Price Analysis: Minor bounce likely on indicator divergence
- USD/CHF's hourly chart shows a bullish RSI divergence.
- The overall bias remains bearish with the pair holding well below 0.9762.
While the path of least resistance for the USD/CHF pair is to the downside, a break lower toward 0.96 could be preceded by a minor bounce, as the hourly chart indicator is reporting a bullish divergence of the relative strength index (RSI).
A bullish divergence occurs when a lower low on the price chart is accompanied by a higher low on the indicator.
The divergence seen on the hourly chart indicates scope for a bounce to the descending trendline resistance at 0.9688. A violation there could bring additional gains above 0.97.
A rejection at the trendline hurdle will yield a sustained move below Tuesday's low of 0.9665.
The overall bias will remain bearish as long as the spot remains below 0.9762, keeping lower highs setup on the daily chart intact.
Trend: Minor bounce likely