USD/CHF Price Forecast: Bears test former highs near 0.8315 as support

USD/CHF tests support at 0.8310-0.8315 as it retreats from four-week highs of 0.8337.
Expectations of a December Fed rate rise are likely to keep US Dollar declines in check.
Technical indicators point to a modest pullback from overbought territory.

A 1.7% advance over the previous two days left intraday momentum indicators in overbought territory, with the US Dollar (USD) now giving back some ground against the Swiss Franc (CHF) on Thursday. Following a retreat from one-month highs near 0.8340, USD/CHF trades at 0.8320 and is testing support formed by previous highs between 0.8310 and 0.8315.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Tuesday’s elevated US consumer inflation figures, together with last week’s robust employment report, have opened the door to another Federal Reserve (Fed) interest rate increase in December. Against that backdrop, any Dollar declines are expected to be limited.

That assessment has received support from Fed officials, some of whom may repeat their views later on Thursday. Earlier this week, Chicago Fed President Austan Goolsbee and San Francisco Fed President Mary Daly voiced concerns over persistently high inflation pressures. New York Fed President John Williams has also signalled the possibility of another rate rise before year-end and is due to speak later in the day. This backdrop makes a substantial reversal in the US Dollar difficult to envisage.

Technical Analysis: Pair retreats from overbought territory

After meeting resistance at the 78.6% Fibonacci retracement of the October-November rally, the pair is correcting lower from oversold levels, although buyers are likely to emerge on dips. USD/CHF currently stands at 0.8322. On the 4-hour chart, the Relative Strength Index (14) remains close to overbought territory at around 67, while the Moving Average Convergence Divergence (MACD) remains positive. Together, these indicators suggest buying pressure persists despite signs of slowing upward momentum.

The support zone just above 0.8310 continues to prove difficult for sellers to breach. A break below it would bring the 10 November high near 0.8270 into focus as the next relevant target, though that level appears distant for today. Conversely, a confirmed move above the previously noted Fibonacci retracement at 0.8337 would put key resistance at 0.8395, the 14 October high, in view.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

US Dollar Posts Its Strongest Performance Against the Australian Dollar Today

Today’s percentage moves in the US Dollar (USD) against the major currencies listed are set out below. The Australian Dollar was the currency against which the US Dollar performed best.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.03%	0.00%	-0.11%	0.02%	0.34%	0.09%	-0.11%
EUR	0.03%		0.04%	-0.07%	0.04%	0.38%	0.10%	-0.09%
GBP	-0.01%	-0.04%		-0.11%	0.04%	0.34%	0.05%	-0.13%
JPY	0.11%	0.07%	0.11%		0.12%	0.45%	0.18%	-0.00%
CAD	-0.02%	-0.04%	-0.04%	-0.12%		0.33%	0.06%	-0.13%
AUD	-0.34%	-0.38%	-0.34%	-0.45%	-0.33%		-0.25%	-0.45%
NZD	-0.09%	-0.10%	-0.05%	-0.18%	-0.06%	0.25%		-0.17%
CHF	0.11%	0.09%	0.13%	0.00%	0.13%	0.45%	0.17%

Percentage movements between the major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. To read USD (base)/JPY (quote), for instance, choose the US Dollar on the left and follow that row across to the Japanese Yen; the intersecting cell gives the percentage change for that pair.