USDCHF: USDCHF broke sharply to the downside this week after the dollar moved lower on the back of lower CPI and PPI. Import prices also fell with an annual decline now of -6.1%. This lowered yields and put pressure on USDCHF as well.
Technically, the price has fallen below January 2021 at 0.87568. It will eventually take a move above that level to hurt the sellers looking for more downside momentum on the major breakout. Before that, 2014 low near 0.86959 could be a closer target, and if broken it will give a short-term bias in favor of the buyers.
Moving to the hourly chart below, the yellow area represents the swing levels from the daily chart from 2014 and 2021. In between the groups is a bearish 100 hourly moving average which currently comes in at 0.87102. This moving average will probably be the first target resistance to cross if buyers want to take control (it moves down in a fairly quick clip).
After all, if USDCHF breaks above the 100 hour EMA, that is only the first step in rebuilding any type of buyer control.
- the lowest from 2014 at 0.86959,
- 38.2% retracement of the move down from the July 6 high of 0.87304, and
- 2014 low at 0.87568
Are all targets that need to be broken to give buyers more control, and also start to make sellers anxious.
USDCHF on the hourly chart
The current price at 0.8618 is always a bit far from those levels.