The USDCHF has continued its move to the downside and in the process has dipped below its 200 day moving average target at 0.8893. The pair is also testing it 38.2% retracement of the move up from the December 2023 low. That level comes in at 0.8883. The low for the day just reached 0.88838. The current price trades at 0.8889.
Earlier today, the price broke below its 100-day moving average of 0.89309.
Also of interest from a technical perspective, is that the price of the USDCHF is trading to the lowest level since March 21 and also near the low for the day.
On March 21, the Swiss National Bank surprised the market with a cut of 25 basis points. They were the first major central bank to cut rates.
There is no doubt the sellers are pushing, but the final support target at 0.8883. This is the point of inflection for the pair.
- Dip and risk focused traders can buy low here and hope for a run back above the 100 day MA at 0.8930.
- Conversely, if broken, the sellers are clearly taking more control on the break and that should lead to more selling momentum.
This article was written by Greg Michalowski at www.forexlive.com. Source