The USDCHF moved lower this week helped by flight to safety flows after strong selling in the equity markets. That move lower, took the price back below its 200 day moving average near 0.8883, and the 38.2% retracement of the move-up from the December low also at that level.
More momentum took the price below a swing area near 0.8819, and when that was broken, down to the 50% midpoint of the same move higher from the December 2023 low at the 0.8777 level.
Technically, buyers leaned against that level – helped by rebounding stocks today – and the price of the USDCHF has moved back above the aforementioned level at 0.8819.
So overall,
- There is strong support at the 50% midpoint at 0.8777.
- There is strong resistance against the 200 day moving average and 38.2% retracement at 0.8883.
In between sets a swing area at 0.8819 and that level will be the rudder in the new trading week for more bullish above and more bearish below.
From there, traders will need to either break above the strong resistance, or break below the strong support.
To prepare for the new trading week, watch the video above.
This article was written by Greg Michalowski at www.forexlive.com.
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