USDCHF sellers lean against target swing area,but sellers have work to do.What to eye now?

The USDCHF experienced a sharp decline on Monday, driven by a stock market tumble led by Nvidia and broad USD selling.

The pair on Monday, found support at 0.8965, the 50% retracement level of the December 2024 rally, and rebounded sharply off of that key support hold. Midweek trading was volatile, with the price fluctuating around the 200-hour MA, but it established a base near this level during the US session yesterday and pushed higher. .

The subsequent bounce continued into today’s trading, and pushed the pair toward a swing area resistance between 0.9108 and 0.9114, where sellers stepped in and drove the price lower.

Key Levels to Watch:

• Support:
  • Swing area at 0.9077.
  • Converged 100/200-hour MAs at 0.9062. A break below this level would shift the technical bias bearish.
• Resistance:
  • Swing area top at 0.9114. A move above this level would favor buyers and further upside momentum.

The pair remains in a range, with the battle between 0.9114 resistance and 0.9062 support likely determining the next directional move. Traders should watch these levels for breakout signals.

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