The USD/CHF pair has been falling this week on safety-seeking flows following a strong sell-off in equity markets. The drop has taken the price back below its 200-day moving average near 0.8883, and the 38.2% retracement of the upside move from the December low is also at this level.
Further momentum pushed the price below the swing zone near 0.8819, and when it was broken, it dropped to the midpoint of the 50% retracement of the same move up from the December 2023 low at 0.8777.
Technically, buyers have headed towards this level – helped by today’s stock rebound – and the USD/CHF pair has moved back above the above mentioned level at 0.8819.
in general,
- There is strong support at the 50% midpoint at 0.8777.
- There is strong resistance against the 200-day moving average and the 38.2% retracement at 0.8883.
Between the two groups, there is a swing area at the 0.8819 level, and this level will act as a rudder in the new trading week for further upside and further downside.
From there, traders will either need to break above strong resistance, or break below strong support.
To prepare for the new trading week, watch the video above.