USDCHF buyers made a play above a swing area earlier, but failed. What levels are in play?

USD/CHF buyers attempted to break above a key swing area earlier today, defined between 0.9108 and 0.9115, but failed to hold above this resistance zone. This swing area remains a critical technical level, and a decisive break above it would signal increased bullish momentum for the pair. The inability to sustain above this zone suggests some hesitation among buyers, but the technical picture remains favorable overall.

Currently, the pair is trading at 0.9102, which is above both its 100-hour and 200-hour moving averages. The 100-hour moving average is positioned at 0.9059, offering a solid support level, while the 200-hour moving average at 0.9081 is reinforced by the 50% retracement of the upward move from the January 24 low. The price holding above these levels suggests a bullish technical bias, as it demonstrates buyers’ willingness to defend key support levels.

To maintain upward momentum, USD/CHF will need to retest and break through the swing area up to 0.9115. A sustained move above this zone would open the door for further gains, potentially accelerating bullish sentiment in the market. However, if the pair fails to break above this resistance and falls below the 200-hour moving average and 50% retracement level, it could signal a shift in sentiment and increase the likelihood of a deeper retracement. For now, the upside bias remains intact, but key levels will determine the next directional move.

This article was written by Greg Michalowski at www.forexlive.com.