USDCHF tests swing area. Can the buyers slow the fall?
The USDCHF pair has recently witnessed both an upward surge and a downward rotation, ultimately breaching the day’s low. Initially, the currency pair found support in the early Asian session within a swing area between 0.9117 and 0.91264. The subsequent upward movement surpassed the 100-hour moving average (blue line in the chart above) at 0.91691 but failed to reach the 200-hour moving average (green line in the chart above), which stands at 0.91810. The highest price achieved was 0.9177 before the pair began to retreat during the past few trading hours.
The day’s lowest price dipped just below the swing area at 0.9115, and the pair is currently trading at 0.9120, within the 0.91179 to 0.91264 range. Buyers are attempting to maintain support at these levels. However, a further drop below 0.91179 is likely to trigger increased downward momentum.
Looking ahead, critical downside targets include the low prices from March 15 at 0.90938 and March 13 at 0.90706. Additionally, the year’s lowest price, reached on February 2 at 0.90586 (not shown), should be taken into account when monitoring potential price movements.
On the topside March the 0.91545 level as a potential resistance level. Above that and the 100 and 200 hour moving averages become back in play. Earlier this week, the price was able to move briefly above the 200 hour moving average, but could not sustain momentum. Getting well that moving averages key if the buyers are to assume more control.