USD/CHF register a fresh weekly high (0.8852) following the failed attempt to test the December low (0.8736).
By : David Song, Strategist
US Dollar Outlook: USD/CHF
USD/CHF register a fresh weekly high (0.8852) following the failed attempt to test the December low (0.8736), but the rebound in the exchange rate may turn out to be temporary should it continue to trade within the descending channel from earlier this year.
USD/CHF Recovery Takes Shape amid Failure to Test December Low
USD/CHF carves a series of higher highs and lows after registering a fresh monthly low (0.8758) at the start of the week, with the rebound in the exchange rate keeping the Relative Strength Index (RSI) above 30.
Join David Song for the Weekly Fundamental Market Outlook webinar.
In turn, the RSI may show the bearish momentum abating as it moves away from oversold territory, and the exchange rate may stage a larger rebound should the bullish price series persists.
With that said, USD/CHF may further retrace the decline from the monthly high (0.9031) as it tries to climb above channel support, but the exchange rate may stage further attempts to test the December low (0.8736) if it continues to track the descending channel from earlier this year.
USD/CHF Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView
- USD/CHF carves a series of higher highs and lows after struggling to close below the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region, and the exchange rate may threaten the descending channel from earlier this year should it continue to retrace the decline from the monthly high (0.9031).
- A move above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone may push USD/CHF towards the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) area, with the next area of interest coming in around 0.9180 (23.6% Fibonacci extension).
- At the same time, the rebound in USD/CHF may turn out to be temporary should it struggle to trade back above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone, with a move below the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region bringing the December low (0.8736) on the radar.
Additional Market Outlooks
US Dollar Forecast: USD/JPY Rebound Keeps RSI Above Oversold Zone
Euro Forecast: EUR/USD on Cusp of Testing November High
Canadian Dollar Forecast: USD/CAD Faces BoC Rate Cut as Trump Tariffs Loom
Gold Price Outlook Hinges on Response to Positive Slope in 50-Day SMA
— Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Click the website link below to read our Guide to central banks and interest rates in 2025
https://www.cityindex.com/en-au/market-outlooks-2025/FY-central-banks-outlook/
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.