USDCHF falls back to underside of broken trend line
The USDCHF has followed the US dollar lower after the employment cost data came in touch weaker than expectations.
Yields are lower with the five-year down 6.4 basis points at 3.618%, the 10 year is down 5.2 basis points at 3.497%.
Looking at the hourly chart of the USDCHF above, the price did move higher in the Asian/early European session. That took the price up to a swing area defined by swing highs from January 16 and January 25. That swing area came between 0.9278 and 0.92878. The high prices stalled near that upper extreme level at 0.92878, and led to more up-and-down price action in the early European session.
Ultimately after breaking back below the 61.8% retracement of 0.92548, the buyers turned to sellers helped by the weaker US data. The fall has now seen the price move back to the underside of the broken trend line near 0.9229 where buyers have so far stalled the fall.
A break below that old trend line would next have traders targeting the 50% midpoint of the move down from the January 13 high at 0.9222 followed by the 100 hour moving average of 0.92132. The 200 hour moving averages that 0.92072 and breaking below that level would be another more bearish tilt for the pair.
Overall the buyers took their shot today and did have some success up to the upper swing area, but help by data and lower yields, the US dollar has reversed course and that has also reversed the technical bias more in favor of the sellers (with more work to do)