On Monday, the USD/CHF currency pair took quite a hit, triggered by a significant downturn in the stock market, with Nvidia leading the charge, coupled with a broad selloff in the US dollar.
Early in the week, the pair managed to find its footing at 0.8965, marking the 50% retracement level from its rally in December 2024. This key level held firm, prompting a strong rebound. The trading persisted in its volatility around midweek, with prices dancing around the 200-hour moving average. However, during the US session yesterday, it seemed to settle and find its base, ultimately pushing upward.
Today’s trading sessions saw this upward momentum continue, with the pair nudging towards a resistance zone between 0.9108 and 0.9114. Here, sellers made their presence known, driving the price back down once more.
Key Levels to Keep an Eye On:
- Support: Look to the swing area at 0.9077. The area where the 100-hour and 200-hour moving averages converge at 0.9062 also serves as crucial support. Dropping below this level could signal a bearish shift in technical sentiment.
- Resistance: Watch the swing area peak at 0.9114. A breakthrough above this mark will lend some force to buyers, possibly fueling further upward momentum.
At present, the pair is navigating a range, with future movement hinging on its dance around the 0.9114 resistance and 0.9062 support. Traders should keep a close eye on these critical levels for potential breakout cues.
