USD/CHF Rallies as US & China Pause Reciprocal Tariffs
USD/CHF trades back above the former support zone around the 2023 low (0.8333) as it rallies to a fresh monthly high (0.8476).
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US Dollar Outlook: USD/CHF
USD/CHF trades back above the former support zone around the 2023 low (0.8333) as it rallies to a fresh monthly high (0.8476).
USD/CHF Rallies as US & China Pause Reciprocal Tariffs
USD/CHF extends the recent series of higher highs and lows as the US and China agree to pause the reciprocal tariffs for 90-days, and the exchange rate may further retrace the decline from the April high (0.8849) as the Trump administration avoids a trade war.
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As a result, USD/CHF may threaten the descending channel from earlier this year, and the Relative Strength Index (RSI) may show the bullish momentum gathering pace as it climbs to its highest level since February.
With that said, the bullish price series in USD/CHF may persist as there appears to be a shift in US Dollar sentiment, but the exchange rate may track the negative slope in the 50-Day SMA (0.8529) should it continue to hold below the moving average.
USD/CHF Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView
- USD/CHF may threaten the descending channel from earlier this year as it climbs to a fresh monthly high (0.8476), with a break/close above the 0.8550 (78.6% Fibonacci extension) to 0.8590 (78.6% Fibonacci extension) zone raising the scope for a move towards 0.8700 (61.8% Fibonacci extension).
- Next area of interest comes in around 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension), but USD/CHF may track the negative slope in the 50-Day SMA (0.8530) should it struggle to push above the moving average.
- Need a move below 0.8360 (100% Fibonacci extension) for USD/CHF to threaten the bullish price series carried over from last week, with a breach below the monthly low (0.8186) bringing 0.8080 (23.6% Fibonacci retracement) on the radar.
Additional Market Outlooks
GBP/USD on Track to Test Positive Slope in 50-Day SMA
Canadian Dollar Forecast: USD/CAD Breaks Out of Descending Channel
USD/JPY Falls from Fresh Monthly High to Hold Below 50-Day SMA
Gold Price Weakness Keeps RSI Out of Overbought Territory
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
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