USDCHF stretches lower, but does snap back after a failed break of a target. What next?

The USDCHF continued its fall to the downside and in the process broke below support near 0.8549 in 0.8579. The will below their level look toward the next screen you retarget between 0.8448 and 0.8459. That level was also broken on its way to a low of 0.84328.

That final break could not be sustained, and the price snapped toward the 0.8500 level.

What next?

The aforementioned swing area between 0.8549 and 0.8579 is the next upside target. Above is the 38.2% retracement of the last move down from last week’s high. That level comes in at 0.86016. If the sellers are to remain in control, they need to stay below those levels.

On the downside, the swing area target at 0.8448 – 0.8459 remains a level that needs to be broken to have traders looking toward the low price from December 2023 and 0.8318.

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