USD/CHF Recovery Takes Shape amid Failure to Test December Low

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By :  ,  Strategist

US Dollar Outlook: USD/CHF

USD/CHF register a fresh weekly high (0.8852) following the failed attempt to test the December low (0.8736), but the rebound in the exchange rate may turn out to be temporary should it continue to trade within the descending channel from earlier this year.

USD/CHF Recovery Takes Shape amid Failure to Test December Low

USD/CHF carves a series of higher highs and lows after registering a fresh monthly low (0.8758) at the start of the week, with the rebound in the exchange rate keeping the Relative Strength Index (RSI) above 30.

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In turn, the RSI may show the bearish momentum abating as it moves away from oversold territory, and the exchange rate may stage a larger rebound should the bullish price series persists.

With that said, USD/CHF may further retrace the decline from the monthly high (0.9031) as it tries to climb above channel support, but the exchange rate may stage further attempts to test the December low (0.8736) if it continues to track the descending channel from earlier this year.

USD/CHF Price Chart – Daily

USDCHF Daily Chart 03122025

Chart Prepared by David Song, Senior Strategist; USD/CHF Price on TradingView

  • USD/CHF carves a series of higher highs and lows after struggling to close below the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region, and the exchange rate may threaten the descending channel from earlier this year should it continue to retrace the decline from the monthly high (0.9031).
  • A move above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone may push USD/CHF towards the 0.9030 (38.2% Fibonacci extension) to 0.9040 (23.6% Fibonacci extension) area, with the next area of interest coming in around 0.9180 (23.6% Fibonacci extension).
  • At the same time, the rebound in USD/CHF may turn out to be temporary should it struggle to trade back above the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) zone, with a move below the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region bringing the December low (0.8736) on the radar.

Additional Market Outlooks

US Dollar Forecast: USD/JPY Rebound Keeps RSI Above Oversold Zone

Euro Forecast: EUR/USD on Cusp of Testing November High

Canadian Dollar Forecast: USD/CAD Faces BoC Rate Cut as Trump Tariffs Loom

Gold Price Outlook Hinges on Response to Positive Slope in 50-Day SMA

--- Written by David Song, Senior Strategist

Follow on Twitter at @DavidJSong

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