USDCHF follows the USD lower after holding resistance at a key MA level. What next?

The USD is trending lower in the early U.S. session, and the USD/CHF is no exception. Technical factors are reinforcing this move, with sellers stepping in at the key 100-hour moving average (MA), located at 0.9112. The pair tested this level multiple times on the hourly chart but failed to break above it, prompting a reversal to the downside.

Currently, the price is testing support at the 0.9077 level. A sustained move below this point would open the door to further downside targets, starting with the day’s low at 0.90507. Beyond that, the next significant level is the 38.2% Fibonacci retracement of the December low to January high rally, sitting at 0.90209. If sellers can push and hold the price below this retracement, it would signal a shift toward stronger bearish control.

However, until the 38.2% retracement is convincingly broken, the current decline remains a standard correction within the broader trend. For now, sellers have the upper hand below the 100-hour MA, but further downside targets must be breached to solidify the bearish bias in both the short and medium term.

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