The USD/CHF pair moved higher during the Asian-Pacific session, briefly breaking above a key swing area between 0.8794 and 0.87995 (rounded to 0.8800). The high of the day reached 0.88035 before reversing to the downside.
The failure to sustain momentum above 0.8800 triggered a move lower, with the price retesting the 200-bar moving average on the 4-hour chart at 0.8780. A subsequent bounce lifted the pair back into the swing area, but sellers held firm.
During the U.S. session, downside momentum accelerated as the price broke below the 200-bar moving average at 0.87804, pushing the pair to a low of 0.8758.
Looking ahead:
- Next support: 61.8% retracement of the November trading range at 0.87452.
- Immediate resistance: Swing area between 0.8772 and 0.8776.
Sellers are more in control thanks to the technical move lower today, and the sellers near the 0.8800 level today.
This article was written by Greg Michalowski at www.forexlive.com.
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