USD/CHF Price Analysis: Declines to 5-½ year low

• USD/CHF drops to the lowest level since January 2015. 
• Daily chart favors deeper declines, but weekly RSI shows oversold conditions.

USD/CHF clocked fresh multi-year lows during Tuesday’s Asian trading hours alongside a broad-based sell-off in the US dollar. 

The pair fell to 0.9048, the lowest level since January 2018, surpassing the previous 5-½ year low of 0.9050 reached on Aug. 3. 

The daily chart leans bearish with the 5- and 10-day simple moving averages (SMA) trending south and a lower higher, lower lows setup. 

However, the 14-week relative strength index dipped below 30, indicating oversold conditions, for the first time since February 2012. 

As such, an oversold bounce may be seen before a deeper decline. That said, the short-term bias would turn bullish only if the spot finds acceptance above the lower high of 0.9198 created on Aug. 12. 

Weekly chart

Trend: Bearish but oversold

Technical levels