Flight to safety flows into the Swiss franc and movement out of the US dollar has the USDCHF moving sharply lower in trading today. The pair also tumbled below a key technical target defined by the:
- 200 day moving average at 0.8884
- 38.2% retracement of the move up from the December 2023 low at 0.8883, and a
- Swing area between 0.8880 and 0.8885
Going forward staying below that area is needed to keep the sellers in firm control. Moving above would be a huge disappointment for the technical sellers on the break lower.
On the downside, the next target area comes between 0.8818 and 0.8825. Below that is the 50% midpoint of the same move higher from the December 2023 low. That level comes in at 0.8777.
Sellers are in control on the break lower today.
This article was written by Greg Michalowski at www.forexlive.com.
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