The USD/CHF has moved lower, breaking below the 38.2% retracement of the December low-to-high move at 0.90209, which now acts as key resistance. Staying below this level reinforces the bearish bias, while a return above could frustrate sellers.
Following the break, the price targeted the 50% retracement at 0.89655, finding initial buyers there during the early U.S. session. This level aligns with a swing area extending up to 0.89745, creating a critical support zone.
A break below 0.89655 would heighten bearish sentiment, while holding above keeps the focus on the battle between the 38.2% resistance at 0.90209 and the 50% support at 0.89655.
This article was written by Greg Michalowski at www.forexlive.com. Source