Flight to safety flows into the Swiss franc and movement out of the US dollar has the USDCHF moving sharply lower in trading today. The pair also tumbled below a key technical target defined by the:
- 200 day moving average at 0.8884
- 38.2% retracement of the move up from the December 2023 low at 0.8883, and a
- Swing area between 0.8880 and 0.8885
Going forward staying below that area is needed to keep the sellers in firm control. Moving above would be a huge disappointment for the technical sellers on the break lower.
On the downside, the next target area comes between 0.8818 and 0.8825. Below that is the 50% midpoint of the same move higher from the December 2023 low. That level comes in at 0.8777.
Sellers are in control on the break lower today.
