USDCHF rebounds near resistance at 0.8900, potential for reversal

The USDCHF has continued to rebound from its session lows earlier this week, and in doing so, it has moved back above the 200-day moving average (MA) and the broken 38.2% retracement level. However, it is currently encountering resistance around the falling 100-hour MA near 0.8900, which aligns closely with the high of a recent swing area. This level is crucial for both buyers and sellers.

If the price can break and sustain above the 0.8900 level, it would signal a more bullish outlook. Conversely, if the price stays below the 200-day MA and moves lower, it would negate the corrective trend and prompt traders to target lower levels again.

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