USDCHF rebounds after basing at swing area support yesterday/today.What next for the pair?

The USDCHF spiked higher on Monday but then began a steady descent through Tuesday and Wednesday. Yesterday’s low tested a key swing area between 0.8997 and 0.9011, where selling momentum slowed, and price action consolidated. In today’s early Asian session, the price failed to break below yesterday’s low, prompting a shift from sellers to buyers, leading to a move higher.

The price has now reached a swing area near 0.9058, serving as a short-term barometer ahead of key resistance levels: the 200-hour moving average at 0.9069 and the 100-hour moving average at 0.9081, which also coincides with the 50% retracement of the January 24 upswing. A move above these levels would strengthen bullish momentum.

For now, the current move appears to be a routine correction off support. Watch 0.9054 (the 61.8% retracement level) as a key threshold. Staying above this level supports continued upside probing, while a break below could reignite bearish momentum.

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