USDCHF trends lower today, but finds buyers near swing area target. What now?

The USDCHF is trending lower today, breaking below a cluster of technical levels in the process including the 200-hour moving average, the 200-bar moving average on the 4-hour chart, the 38.2% retracement level and the 100-bar moving average on the 4-hour chart. The price bottom near the low of a swing area down to 0.9086, and bounced back higher.

What now?

On top, the 200 bar moving average off where chart at 0.91057 is close resistance. Stay below keeps the sellers firmly in control at least in the short term. On the downside, however, getting back below the 38.2% at 0.90925 of the May trading range – and staying below – is needed to add to the sellers control. Absent that we could see a shift back to the upside on the failure below that key retracement level.

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