USDCHF fell last week, and in the process tested an important swing zone between… 0.80090 and 0.80178 (red numbered circles on the chart below) on Thursday and Friday. The decline also reached 38.2% bounce From the rise from the low of May 29 to the high of June 24, a level that came just below the swing zone at 0.80074.
Buyers responded every time. The pair found support at 0.80090 On both days before it bounced higher, which reinforces the importance of that support area. As long as the price remains above that area, buyers can say that they have successfully defended a key technical floor.
The bounce has extended into today’s session, as the price is now challenging the level The 100 hour moving average is down at 0.80615 (See the 100 hour moving average on the chart below.) This moving average is reinforced by another swing zone in between 0.80620 and 0.80699 (green numbered circles), making it a major resistance area and the next important test for both buyers and sellers.
From a trading perspective, the technical picture provides well-defined risks. Sellers can count on 0.80620 to 0.80699 Resistance area, using stops on a sustained move above 0.80699While we look forward to the pair returning towards the downside.
For buyers, the goal is clear. A decisive break above the resistance area will target a level The 200 hour moving average is at 0.80805. If bullish momentum carries the price above this level, this would strengthen the technical outlook and open the door for another wave towards the highs of the past few weeks, with 0.81389 It becomes the next major upside target.
