USD/CHF closed higher on Tuesday as it extended the rally off December's low. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are oversold but remain bullish signalling that sideways to higher prices are possible near-term. If it extends its rally, the 38% retracement level of last year's decline crossing is the next upside target. Closes below the 10-day moving average crossing would temper the bullish outlook.