The CHF been more of a safe-haven currency as the stocks move lower. That has helped to push the USDCHF lower this week.
In trading today, the USDCHF fell below key support defined by a number of swing lows and highs going back to February and March 2023. That area comes between 0.8819 and 0.8825.
The break below that level opened the door for a run toward the 50% midpoint of the move up from the December 2023 low to the May 2024 high at the 0.8777 level. Support buyers came in against that level and bounced the price back toward the 0.8819 level, where sellers leaned on the tesdt.
The price is currently trading between those two technical levels setting up the battle between buyers and sellers.
At some point, one is going to win.
That is, the buyers would win on a break above the 0.8819 to 0.8825 area.
Conversely the sellers would continue to dominate on a break below the 50% midpoint at 0.87777 level.
In between, and up and down activity can be expected.
This article was written by Greg Michalowski at www.forexlive.com.
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