USD/CHF Rebounds Following Test of January Low

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USD/CHF trades to a fresh weekly high (0.8494) after testing the January low (0.8401).

USD/CHF Rate Outlook

USD/CHF appears to be defending the yearly range as it bounces back ahead of the December low (0.8333), with the rebound in the exchange rate pulling the Relative Strength Index (RSI) out of oversold territory.

A break/close above the 0.8550 (78.6% Fibonacci extension) to 0.8590 (78.6% Fibonacci extension) region may push USD/CHF back towards 0.8700 (61.8% Fibonacci extension), with the next area of interest coming in around 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension), which incorporates the monthly high (0.8788).

However, failure to hold above January low (0.8401) brings the 0.8350 (100% Fibonacci extension) to 0.8360 (100% Fibonacci extension) region on the radar, with the next area of interest coming in around the December low (0.8333).

--- Written by David Song, Strategist at FOREX.com