Furthermore, at the below chart we can see the daily volumes of futures and options traded on the Chicago Mercantile Exchange. We can see that on the 4th of September the volume increased validating the upside move to cap at 0.9333. Therefore, we are confirming with volume that the bulls prevail in the USDCHF trading.
Looking at the oscillators, the Stochastic is overbought since it’s above the 85% line. The OsMA approached previous peaks line and moves upward. The RSI (14) went above the 70 line indicating that is in the overbought zone as well. In our opinion and based on this analysis the currency pair in the longer term is more likely to continue its upside path however in the shorter term due to the overbought oscillators we would expect a corrective move. In addition, the bullish traders have been stronger and they are making profits in the last two weeks thus sooner or later they will start collecting these profit which would induce the pair in a corrective move. Lastly, investors’ focus turns to Non-Farm Payrolls release in today’s trading where a lower than expected number could trigger a corrective move.
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