USDCHF tests a cluster of support as buyers take profit. Can support area hold?

The USDCHF is correcting lower in early US trading and in the process is back down testing the:

• Broken 38.2% on the daily chart at 0.9025.
• 100 hour MA at 0.90167
• Swing level at 0.9020

A move below the area would open the door for more corrective price action after the run higher in March.

Staying above keeps the buyers more in control.

In March, the low was reached at 0.87289 and stepped higher. Last week, the SNB surprised with a rate cut which sent the pair from around 0.8855 to 0.8975. The price has since continued the run higher with the pair extending to 0.90705 yesterday. That was the highest level going back to early November 2023.

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