The USDCHF formed a ceiling last Friday and into this week near the 0.89824 level. The high prices over those days stalled against that level on Friday, Monday and again today. Eventually, the buyers gave up and turned to sellers.
The price today has moved lower in the early US session as the US dollar has fallen ahead of the FOMC rate decision today. The Federal Reserve is expected to keep rates unchanged today.
Also in play is the SNB rate decision tomorrow. The SNB has raised rates for 4 consecutive meetings. They are expected to make it 5 with a 25 basis point hike.
Technically, the price decline today has entered a swing area between 0.8934 and 0.8947. Also in play is the 200 hour moving average (see green line on the chart below). The last time the price broke below the 200 hour moving average was on September 1. That break failed and started the trend move to the upside which saw the price of the USDCHF move from around 0.8815 to the high price of 0.89282.
A move below the 200 hour moving average and the 0.88347 would open the door for further selling momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source