US Dollar Forecast: USD/CHF Weakness Keeps RSI in Oversold Territory
USD/CHF gives back the advance from earlier this week to keep the Relative Strength Index (RSI) in oversold territory.
Share this:
US Dollar Outlook: USD/CHF
USD/CHF gives back the advance from earlier this week to keep the Relative Strength Index (RSI) in oversold territory, but the exchange rate may consolidate over the remainder of the week as it appears to be defending the monthly low (0.8100).
US Dollar Forecast: USD/CHF Weakness Keeps RSI in Oversold Territory
Keep in mind, USD/CHF snapped a long-term range as it pushed below the 2023 low (0.8333) during the previous week, and the weakness in the exchange rate may persist as long as the RSI holds below 30.
Join David Song for the Weekly Fundamental Market Outlook webinar.
David provides a market overview and takes questions in real-time. Register Here
In turn, the rebound from the monthly low (0.8100) may turn out to be temporary and USD/CHF may continue to track the descending channel from earlier this year as the 50-Day SMA (0.8808) establishes a negative slope.
With that said, USD/CHF may continue to hold below the former-support zone around the 2023 low (0.8333), but the RSI may show the bearish momentum abating should it recover from oversold territory.
USD/CHF Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView
- USD/CHF may attempt to test the monthly low (0.8100) as it gives back the rebound from earlier this week, with a break/close below 0.8080 (23.6% Fibonacci retracement) opening up 0.7810 (161.8% Fibonacci extension).
- Next area of interest comes in around 0.7680 (161.8% Fibonacci extension), but USD/CHF may attempt to retrace the decline from the start of April should it defend the monthly low (0.8100).
- Need a move/close above the 0.8333 (2023 low) to 0.8360 (100% Fibonacci extension) zone to bring the 0.8550 (78.6% Fibonacci extension) to 0.8590 (78.6% Fibonacci extension) region on the radar, with the next area of interest coming in around 0.8700 (61.8% Fibonacci extension).
Additional Market Outlooks
GBP/USD Stages Six-Day Rally for First Time in 2025
USD/JPY Defends Monthly Low to Keep RSI Above 30 for Now
Canadian Dollar Forecast: USD/CAD Faces BoC Meeting Ahead of Canada Election
Euro Forecast: EUR/USD Clears 2024 High to Push RSI into Overbought Zone
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
Swiss Franc Short-term Outlook: USD/CHF Selloff Nears Critical Support Ahead of NFP 11 4 2026
USD/CHF bears are closing in on critical trend support, with the next reaction likely to determine whether the October decline has further to run.
Euro Technical Outlook: EUR/USD Support Reversal Sets Up Breakout Test Ahead of NFP 11 4 2026
Euro bulls are attempting to build on the rebound from recent lows, but pivotal resistance still stands in the way of a larger EUR/USD recovery.
GBP/USD forecast: US Mid-terms, NFP and BoE put cable in sharp focus
The US dollar has been a standout loser in the FX space today. A Democrat-controlled Congress is widely seen as being at least mildly negative for the dollar, partly because of the potential implications for the AI investment story and partly because of the risk of another prolonged government funding standoff, potentially from next summer. This has allowed the likes of the GBP/USD to rally alongside gold and silver.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.