- The Swiss franc is on the driver's seat, as shown by the USD/CHF dropping 1.82%.
- Sentiment in the FX space fluctuated, with safe-haven peers gaining, except for the JPY.
- USD/CHF Price Forecast: Subject for a mean reversion move towards 0.9850.
The USD/CHF recovered some ground after falling to fresh weekly lows around 0.9620, bounced off, and reclaimed 0.9700 on Friday. At the time of writing, the USD/CHF is trading at 0.9695, up by 0.38%.
US equities reflected a positive market mood, but in the FX space, the sentiment was mixed. The greenback staged a recovery, as the US Dollar Index reflected, gaining 0.80%, sitting at 104.631. US Treasury yields fell, though they remained above the 3% threshold.
USD/CHF Price Forecast: Technical outlook
The USD/CHF shifted neutral biased after tumbling 400 pips from the parity, just above the 50-day moving average (DMA) at 0.9700. Reinforcing the aforementioned is the position of the Relative Strength Index (RSI), dropping from overbought conditions, under the 50-midline at 47.40. Nevertheless, due to the size of the fall and the USD/CHF tumbling towards the 78.6% Fibonacci level, that would open the door for a mean reversion move near 50% or the 38.2% Fibonacci retracement.
That said, the USD/CHF first resistance would be the 50-DMA at 0.9700. A breach of the latter would expose the 61.8% Fibonacci retracement at 0.9737. Once broken, that would send the pair towards the 50% Fibo level at 0.9797, followed by a re-test of the 38.2% Fibonacci retracement at 0.9857.
Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD struggles to hold above 1.0400 as mood sours
EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. In the absence of high-tier data releases, the cautious risk mood helps the US Dollar hold its ground and forces the pair to stretch lower.
GBP/USD declines below 1.2550 on renewed USD strength
GBP/USD loses its traction and trades below 1.2550 in the second half of the day on Monday. The US Dollar (USD) benefits from safe-haven flows and weighs on the pair as trading conditions remain thin heading into the Christmas holiday.
Gold drops to $2,620 area as US bond yields edge higher
Gold struggles to build on Friday's gains and trades modestly lower on the day near $2,620. The benchmark 10-year US Treasury bond yield edges slightly higher above 4.5%, making it difficult for XAU/USD to gather bullish momentum.
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin hovers around $95,000 on Monday after losing the progress made during Friday’s relief rally. The largest cryptocurrency hit a new all-time high at $108,353 on Tuesday but this was followed by a steep correction after the US Fed signaled fewer interest-rate cuts than previously anticipated for 2025.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.