US Dollar Forecast: USD/CHF Approaches Channel Resistance
USD/CHF approaches channel resistance as it attempts to extend the rebound from the monthly low (0.8756).
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US Dollar Outlook: USD/CHF
USD/CHF approaches channel resistance as it attempts to extend the rebound from the monthly low (0.8756), with the recent recovery in the exchange rate keeping the Relative Strength Index (RSI) above 30.
US Dollar Forecast: USD/CHF Approaches Channel Resistance
USD/CHF may threaten the descending channel from earlier this year as it stages a four-day rally, and the RSI may show the bearish momentum abating as it moves away from oversold territory.
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As a result, USD/CHF may further retrace the decline from the monthly high (0.9031), but the rebound in the exchange rate may turn out to be temporary as the 50-Day SMA (0.8984) establishes a negative slope.
With that said, USD/CHF may continue to track the descending channel as long as it holds below the moving average, and the exchange rate may stage additional attempts to test the December low (0.8736) should it pull back ahead of channel resistance.
USD/CHF Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView
- USD/CHF approaches channel resistance after failing to test the December low (0.8736), with a break/close above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone raising the scope for a move towards the monthly high (0.9031).
- Need a break/close above the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) region to open up the February high (0.9197), but USD/CHF may struggle to retain the rebound from the monthly low (0.8756) should it continue to track the descending channel from earlier this year.
- Lack of momentum to break/close above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone may push USD/CHF back towards the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region, with a breach below the December low (0.8736) bringing 0.8700 (61.8% Fibonacci extension) on the radar.
Additional Market Outlooks
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EUR/USD Post-Fed Weakness Pulls RSI Back from Overbought Zone
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AUD/USD Fails to Test February High Ahead of Fed Rate Decision
--- Written by David Song, Senior Strategist
Follow on Twitter at @DavidJSong
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