06.05.202215:40 Forex Analysis & Reviews: Short-term pull back justified in USDCHF.

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USDHCF remains in a bullish trend making higher highs and higher lows. Price remains inside the upward sloping channel since beginning of April, however the RSI has started providing us some warning signals for bulls.

Blue lines- bullish channel

Black lines- bearish RSI divergence

The RSI is not making higher highs as price does. The RSI is making lower highs providing us with a bearish divergence. This is not a reversal. This is however a good indicator that the up trend is weakening and a pull back is justified. Support by the bullish channel is found at 0.9745. A break below this level will be a bearish signal and will increase chances of a bigger pull back. Until then bulls remain in control of the trend.

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