USD/CHF Price Analysis: Hits lowest since May 2015

• USD/CHF slips to multi-year lows below 0.9120 on broad-based dollar sell-off.
• Technical indicators like the RSI suggest extreme oversold conditions. 

The USD/CHF pair fell to 0.9116 during Thursday's Asian trading hours to hit the lowest level since May 2015. 

The pair has dropped by over 3.6% this month and is down over 5.6% on a year-to-date basis. With the Federal Reserve reiterating dovish bias on Wednesday, the doors remain open for a further decline in USD/CHF. 

However, we may see a minor corrective bounce as the 14-day relative strength index is reporting extreme oversold conditions. In addition, the 4-hour chart RSI is signaling a bullish divergence. 

As such, the pair may revisit the descending 50-hour simple moving average (SMA), currently at 0.9170. At press time., USD/CHF is trading at 0.9124. 

Daily chart

Trend: Bearish but oversold

Technical levels