Tuesday, July 26, 2011

USD/CHF has potential for rebound

Technical analysts at Bank of Tokyo - MUFJ believe that the greenback may rise from the record minimum versus the Swiss franc in the 0.8000 area hit today.

The specialists underline that 14-day RSI (relative strength index) for USD/CHF dropped to 30 that may mean that its rate has fallen too rapidly and risks reversing. As a result, the economists see the chance of the pair’s short-term recovery.

In their view, US currency that is now at roughly 6% below the Ichimoku Cloud has to reach it in order to confirm the rebound and the change of trend.

daily usdchf 11-00  

Chart. Daily USD/CHF

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