Forex Technical Update
The 0.93 pivot acted as a very brief support before this week's opening price action pushed below it, suggesting an established top and therefore a short to medium term corrective decline in the USD/FHF. Looking at the daily chart, we see some retracement targets for the 0.7065 to 0.9593 swing. The 23.6% retracement is near the 0.90 psychological support. If the market bounces off this but remains below 0.93, we are looking for lower retracement, next one at 38.2% which is at 0.8630.
The 4H USD/CHF chart shows the market in a sharp decline below 0.93. The RSI has dipped below 30 already, and is re-tagging 30. As the market stretches to the downside, we may be oversold in the near-term. If there is a more significant bounce that climbs back above 0.93 but still remains under the 0.94, the market is still in the bearish mode, and the can gain confidence for the outlook toward 0.90, 0.8630 targets.