Technical Analysis

The USDCHF buyers are in control.What is needed in the ST to give the sellers some control

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The USD/CHF reached its highest level since July this week but fell short of the key resistance zone on the daily chart, located between 0.8986 and 0.90178. This area remains a critical topside target, and a break above it would open the door for further upside momentum. Buyers will be eyeing this level closely in the coming sessions.

On the downside, sellers face immediate challenges, with two nearby support levels that must be breached to shift the narrative. The first is a swing zone between 0.8914 and 0.8923. If the price falls below this area, the next critical level is the 61.8% retracement of the 2024 trading range at 0.88989. However, as long as the price remains above these supports, buyers retain full control of the market.

If sellers manage to push the price below the 61.8% retracement level, attention will turn to the 200-day moving average at 0.88254 and the 50% retracement level at 0.87986. For now, buyers hold the upper hand, but sellers must prove they can overcome these significant support levels to regain control.

Technical Analysis: USD/CHF

  • Resistance Levels:

    • Primary Resistance Zone: 0.8986 – 0.90178 (Daily chart).
      • A break above this zone would signal further upside momentum.
      • Sustained movement above opens the door for continued bullish control.

  • Support Levels:

    • Swing Zone: 0.8914 – 0.8923.
      • First downside target for sellers; a break below weakens short-term bullish momentum.
    • Key Fibonacci Level: 61.8% retracement of 2024 range at 0.88989.
      • Critical support; failure to break below confirms buyers’ dominance.
    • Additional Targets Below:
      • 200-Day Moving Average (MA): 0.88254.
      • 50% Retracement Level: 0.87986.
      • These levels become relevant if sellers break lower support.

  • Current Market Bias:

    • Buyers remain in full control as long as the price stays above the 61.8% retracement level.
    • Sellers need a sustained move below 0.88989 to signal a shift in momentum and target deeper levels.

  • Key Focus:

    • Watch for a breakout above the 0.8986 – 0.90178 zone for bullish confirmation.
    • Monitor support levels for signs of seller strength or a continued bullish hold.

This article was written by Greg Michalowski at www.forexlive.com. Source