US Dollar Forecast: USD/CHF Holds Below Channel Resistance
USD/CHF may track the negative slope in the 50-Day SMA (0.8950) as it holds below channel resistance.
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US Dollar Outlook: USD/CHF
USD/CHF may consolidate over the coming days as it gives back the advance from the start of the week, but the exchange rate may struggle to retain the rebound from the March low (0.8756) as it still trades within the descending channel from earlier this year.
US Dollar Forecast: USD/CHF Holds Below Channel Resistance
USD/CHF may track the negative slope in the 50-Day SMA (0.8950) as it holds below channel resistance, and the exchange rate may stage further attempts to test the December low (0.8736) as long as it holds below the moving average.
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With that said, the range bound price action in USD/CHF may turn out to be temporary as it pulls back from channel resistance, but the exchange rate may negate the descending channel should it extend the advance from the weekly low (0.8781).
USD/CHF Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView
- USD/CHF seems to be defending the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region as it rebounds ahead of the March low (0.8756), and a breach above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone may push the exchange rate towards the March high (0.9031).
- A break/close above the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) area opens up 0.9180 (23.6% Fibonacci extension), but failure to defend the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region may keep the exchange rate within the descending channel from earlier this year.
- In turn, USD/CHF may stage further attempts to December low (0.8736), with a break/close below 0.8700 (61.8% Fibonacci extension) bringing the November low (0.8615) on the radar.
Additional Market Outlooks
Canadian Dollar Forecast: USD/CAD Rebound Fizzles Ahead of Trump Tariffs
Euro Forecast: EUR/USD Cup-and-Handle Formation Takes Shape
Gold Price Halts Decline from Record High Ahead of Trump Tariffs
Australian Dollar Forecast: AUD/USD Coils Ahead of RBA Rate Decision
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
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