USDCHF has been moving lower this week, helped by the flight to safety flows after heavy selling in equity markets. This downward move took the price back below its 200-day moving average near 0.8883, and the 38.2% retracement of the rise from the December low also occurred at this level.
Further momentum took the price below a swing zone near 0.8819, and when this was broken, to the 50% midpoint of the same move higher from the December 2023 low at the 0.8777 level.
Technically, buyers have leaned against this level – helped by the rebound in stocks today – and USDCHF price has moved back above the aforementioned level at 0.8819.
So overall,
- There is strong support at the 50% midpoint at 0.8777.
- There is strong resistance against the 200-day moving average and a 38.2% retracement at 0.8883.
In between, a swing zone lies at 0.8819 and this level will be the rudder for the new trading week for further upside above and further downside below.
From here, traders will either need to break through the strong resistance or break through the strong resistance below the strong support.
To prepare for the new trading week, watch the video above.
cnbctv18-forexlive
