The USDCHF continues to find sellers near familiar technical levels, with the 38.2% retracement of the March–April decline at 0.8482 acting as firm resistance earlier this week. The inability to push above that level has resulted in a retracement lower as sellers remain in control.
The swing area halted yesterday’s fall between 0.8318 and 0.8333 (the low reached 0.83233), which previously served as resistance and now acts as support.
Buyers will want to see price remain above that 0.8318–0.8333 zone to maintain short-term bullish hopes. A move below would weaken the technical picture and open the door for further downside probing. Also in play above that is the falling 200 bar MA on the 4-hour chart at 0.8342 (see green line on the chart above).
On the topside, the 38.2% retracement at 0.8482 remains the key level to break to shift control more decisively to the buyers.
Key levels:
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Support: 0.8344 (200-bar MA on 4-hour chart), 0.8318–0.8333 (key swing area)
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Resistance: 0.8473. (This is the high of swing area going back January 2015 – not shown), 0.8482 (38.2% Fib of move down from 2025 high), 0.8619 (50% retracement)
This article was written by Greg Michalowski at www.forexlive.com.