USD/CHF Price Prediction: Breakout stalls, pullback forms potential Bull Flag pattern

USD/CHF breaks out of range, peaks and corrects.
It may be forming a Bull Flag pattern with further upside potential.

Joaquin Monfort FXStreet

USD/CHF pulls back after breaking out of its multi-week range and rallying substantially higher on Friday.

Since breaking out, the pair is now in a short-term uptrend and given it is a key tenet of technical analysis theory that “the trend is your friend” the odds favor a continuation higher.

USD/CHF 4-hour Chart

USD/CHF has pulled back over recent periods and in so doing has formed what looks like a Bull Flag pattern. These are composed of a sharp rally called the “pole” and a pullback (the “flag square”). If this is the case then a break above the 0.8607 high of the flag would lead to a rally to around 0.8619 (Fibonacci 61.8% of the pole extrapolated higher) at a minimum and around 0.8650 (100% extrapolation of the pole) as a maximum.

A minimum upside target also lies at 0.8617 (August 14 swing low), or 0.8622 (Fibonacci 61.8% extrapolation of the height of the prior range higher). A really bullish move could reach 0.8675, the 100% extrapolation of the height of the range.

The Relative Strength Index (RSI) moved into overbought territory when the breakout rally peaked. It has since come back down into neutral territory during the pullback in price. This is a bearish sign and suggests a deeper correction may develop. Support lies at 0.8550 (September 12 high) and even tougher support at 0.8540 (the top of the range).

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

AUD/USD seems vulnerable near 0.6800, 10-month low amid bullish USD

AUD/USD languishes near a 10-month low during the Asian session on Friday, awaiting a break below 0.6800 before the next leg up amid a bullish US Dollar. Firming Fed rate-hike expectations, along with fading hopes for US-Iran diplomacy, help the USD hold gains at its highest level since April 2025. Moreover, the RBA’s dovish tilt undermines the Aussie and backs the case for further losses.

USD/JPY bulls turn cautious near 160.00 amid intervention risks

USD/JPY enters a bullish consolidation phase around its highest level since early September as bulls turn cautious amid intervention risk near 160.00. Meanwhile, the downside seems cushioned as the wide US-Japan interest rate gap keeps the Yen carry trade active. Furthermore, the possibility of a jumbo Fed rate hike and Middle East uncertainties hold the US Dollar near a 19-month top, supporting the currency pair.

Gold remains on the back foot below $3,900

Gold now alternates gains with losses below the $3,900 mark per troy ounce on Friday. The precious metal struggles to regain traction amid the firmer US Dollar, mixed US Treasury yields and expectations of further tightening by the Fed at its December meeting.

Bitcoin just posted five straight losing weeks, and the storm may not be over yet

Bitcoin is struggling to find support, slipping below $70,000 as multiple headwinds threaten to push the Crypto King lower. The much-anticipated “Uptober” rally failed to materialize, with persistent selling pressure and widespread liquidations instead reinforcing the “Rektober” narrative.

Week ahead – Fed Minutes, inflation data and Nvidia earnings to guide investors

Fed minutes may add to hawkish tone as bets of 50-bps hike grow. Nvidia to report earnings as bar to impress high after spy scandal. Trade and geopolitics to be focal point of Trump-Xi summit.

Gold hit its lowest level of 2026 near $3,850

Gold (XAU/USD) attempts to stabilize around $3,890 on Friday after falling to $3,852 on Thursday, its lowest level since October 2025. The precious metal has lost more than 4% this week, as investors increasingly anticipate further monetary tightening from the Federal Reserve (Fed). The latest decline reflects a sharp change in market expectations.