The USDCHF fell below a KEY FLOOR LEVEL that I have been monitoring from a technical perspective at 0.86058. That break opened the door for further downside momentum the price has since fallen below its 200 bar moving average on the 4-hour chart at 0.8583 (see chart below), and the 38.2% retracement of the move up from the December low at 0.85765. Staying below those levels will keep the sellers firmly in control at least in the short-term for the USDCHF.
On the downside, the 50% midpoint of the move up from the December low comes in at 0.85299. That level will be the next key target on the downside for the pair on increased dollar selling.
This article was written by Greg Michalowski at www.forexlive.com. Source