USDCHF Long-Term Technical Forecast
The USDCHF is in the exact same position as the EURUSD (but as the inverse). A drop below .9647 would complete wave 5 that began at 1.3285. Although not shown, momentum indicators made an extreme with price at .9647. Again, major turns almost always occur when indicators diverge from price. There is trendline resistance at near 1.15 this month and former support at 1.1286 should also provide resistance (if needed).
USDCHF Fundamental Outlook/Interest Rate Forecast
A clear correction in Swiss National Bank interest rate forecasts has left markets expecting 10bp of SNB rate cuts in the coming year—removing a key pillar of support for the low-yielding currency. All the while, markets boosted their expectations for the future of US Federal Reserve interest rate expectations, and Credit Suisse figures predict that the USDCHF interest rate differential will improve by 72 basis points through the coming year. If this proves true, we could see the US dollar strengthen further against the Swiss Franc.
USDCHF Forex Sentiment Outlook
Swiss Franc Could Fall (USDCHF Could Rally) Further Before Forex Positioning Extreme
