US Dollar Forecast: USD/CHF Descending Channel Remains Intact
USD/CHF may struggle to retain the rebound from the monthly low (0.8756) as the descending channel from earlier this year remains intact.
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US Dollar Outlook: USD/CHF
USD/CHF is little changed from the start of the week as it trades in a narrow range, but the exchange rate may struggle to retain the rebound from the monthly low (0.8756) as the descending channel from earlier this year remains intact.
US Dollar Forecast: USD/CHF Descending Channel Remains Intact
In turn, USD/CHF may snap the range bound price action as it still holds below channel resistance, and the exchange rate may continue to track the bearish formation as the 50-Day SMA (0.8966) reflects a negative slope.
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With that said, USD/CHF may stage further attempts to test the December low (0.8736) as the rebound from the monthly low (0.8756) seems to be stalling ahead of channel resistance, but the exchange rate may negate the descending channel should it consolidate over the remainder of the month.
USD/CHF Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView
- USD/CHF approaches channel resistance as it defends the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region, and the exchange rate may negate the formation from earlier this year should it break/close above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone.
- A break above the descending channel may push USD/CHF towards the monthly high (0.9031), but a break/close below the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region may lead to test of the December low (0.8736).
- A break/close below 0.8700 (61.8% Fibonacci extension) opens up the November low (0.8615), with the next area of interest coming in around 0.8550 (78.6% Fibonacci extension) to 0.8590 (78.6% Fibonacci extension).
Additional Market Outlooks
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USD/JPY Pulls Back Ahead of Monthly High with US PCE in Focus
British Pound Forecast: GBP/USD Coils with UK CPI on Tap
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
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