USD/CHF Rebound Pulls RSI Above 30

USD/CHF appears to be defending the January low (0.8401) as it extends the rebound from the monthly low (0.8433), with the Relative Strength Index (RSI) climbing above 30 to indicate a buy signal.

USD/CHF Rate Outlook

USD/CHF snaps the recent series of lower highs and lows as it trades to a fresh weekly high (0.8662), with a breach above 0.8700 (61.8% Fibonacci extension) bringing the monthly high (0.8788) on the radar.

A break/close above the 0.8770 (61.8% Fibonacci extension) to 0.8800 (50% Fibonacci extension) region brings the 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension) area on the radar, but USD/CHF may struggle to retrace the decline from earlier this month should it respond the negative slope in the 50-Day SMA (0.8897).

Failure to defend the January low (0.8401) opens up 0.8360 (100% Fibonacci extension) with the next area of interest coming in around the 2023 low (0.8333).

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