USDCHF fell below a floor area and failed. Sellers had their shot. They missed.

USDCHF moved lower in the early Asian session, breaking below a swing area at 0.8965–0.8974 (see red circles on the chart). While the break initially triggered further downside, momentum faded, and the price rebounded back above the level. Sellers quickly turned into buyers, pushing the pair toward a higher swing area between 0.8997 and 0.9011.

Currently, USDCHF is trading between these two key zones. When a breakout fails quickly, traders often react by defending the broken level—in this case, turning 0.8965–0.8974 into support. If the price dips back into this area, buyers may look to lean against the lower boundary, using it as a potential entry with stops just below.

The key objective for buyers is to break and hold above 0.9011, which would shift momentum further to the upside.

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