USDCHF sees rally over-stretched

The US dollar tanked after an increase in US jobless claims tempered market optimism. The pair has met stiff selling pressure at 0.9470 since last July.

The RSI has repeatedly ventured into the overbought area and suggested that the rally could have overextended itself.

0.9400 is the immediate support and a bearish breakout could trigger a broader sell-off to 0.9350. Below that, a deeper pullback may lead the price action towards the medium-term support level at 0.9220 on the daily chart.