The USDCHF currency pair has seen a notable increase in activity, registering a 49 pip extension in its trading range today. This movement pushes it 3 pips beyond the 22-day average trading range, which equates to approximately one month of trading, making it the first among the major currency pairs to achieve this level of activity.
In an analysis provided in the USDCHF morning video, it was highlighted that the USDCHF found robust support near its 200-day moving average. This support is situated within a critical swing area, specifically between 0.8818 and 0.8825, which played a pivotal role in converting sellers into buyers.
The momentum for USDCHF shifted significantly upon breaking above the high from the previous Friday, recorded at 0.88524. This breakthrough propelled the currency to a high of 0.8870. Currently, the pair finds close support at 0.88524, while looking ahead, it faces resistance at the February high of 0.8885 and the March 1 high of 0.88929.
A broader examination of the daily chart sheds light on the importance of the 61.8% Fibonacci retracement level from the currency’s October 2023 high, located at 0.88957. This level is intriguingly close to the March 1 high, highlighting the significance of this area. Surpassing the 0.8900 threshold appears to be a critical step for reinforcing a bullish stance in future trading sessions.
This article was written by Greg Michalowski at www.forexlive.com. Source