US Dollar Forecast: USD/CHF Rebounds on Wait-and-See Fed

US Dollar Outlook: USD/CHF

USD/CHF bounces back from a fresh monthly low (0.8186) as the Federal Reserve insists that ‘we are well positioned to wait for greater clarity before considering any adjustments to our policy stance.’

US Dollar Forecast: USD/CHF Rebounds on Wait-and-See Fed

USD/CHF may further retrace the decline from the start of the week as the Federal Open Market Committee (FOMC) appears to be on track to keep US interest rates on hold, but the exchange rate may continue to track the descending channel from earlier this year amid the failed attempts to trade back above the former support zone around the 2023 low (0.8333).

Join David Song for the Weekly Fundamental Market Outlook webinar.

David provides a market overview and takes questions in real-time. Register Here

With that said, the rebound in USD/CHF may turn out to be temporary as it no longer trades within the 2023 range, and the exchange rate may struggle to retain the advance from the April low (0.8040) as the 50-Day SMA (0.8567) establishes a negative slope.

USD/CHF Price Chart – Daily

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

USD/CHF falls to a fresh monthly low () after staging another failed attempt to push back above the former support zone around the 2023 low (0.8333), and failure to hold above 0.8080 (23.6% Fibonacci retracement) may lead to a test of the yearly low (0.8040).
Next area of interest comes in around 0.7810 (161.8% Fibonacci extension), but USD/CHF may trade within a defined range should it hold above 0.8080 (23.6% Fibonacci retracement).
At the same time, USD/CHF may threaten the descending channel from earlier this year on a break/close above 0.8360 (100% Fibonacci extension), with the next area of interest coming in around 0.8550 (78.6% Fibonacci extension) to 0.8590 (78.6% Fibonacci extension).

Additional Market Outlooks

Canadian Dollar Forecast: USD/CAD Reverses Ahead of Monthly High

EUR/USD Defends Rebound from Monthly Low Ahead of Fed Rate Decision

USD/JPY Rebound Unravels with Fed Rate Decision on Tap

British Pound Forecast: GBP/USD Selloff Stalls Ahead of BoE Meeting

--- Written by David Song, Senior Strategist

Follow on Twitter at @DavidJSong

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.