The CHF is just behind the JPY as the currency of choice today as investors look toward safe haven. The CHF is a standard safe haven currency.
Looking at the daily chart above, the price of the pair is now down 6 the last 7 trading days after peaking last Monday at 1.00637. That high took out the high price from May 12 and May 13 but only by about 15 pips before rotating back to the downside.
On Tuesday, the price fell below the 100 hour moving average (blue line in the chart below). Then on Wednesday, the price raced away from its 200 hour moving average (green line in the chart below).
Yesterday, the price moved down to test the 50% midpoint of the move up from the swing low reached on March 31 (see hourly chart below) the 50% came in at 0.9629. The low price yesterday reached 0.96265.
Today the price traded above and below the 50% midpoint.
The weaker US data today led to sharp falls in stocks and US yields and that has pushed the flows into the relative safety of the CHF. The USDCHF made a new session low of 0.95727. Downside targets now are centered around a swing area between 0.9535 and 0.95523 (see red numbered circles and yellow area on the chart below). The 61.8% retracement of the same move higher comes in near that area at 0.9527.
Perhaps of more importance from a technical perspective is that risk can be defined at the 50% midpoint area near 0.9629. I would expect that if the sellers can stay below that level it would give short and intermediate term traders the most comfort. Holding the level yesterday increases that levels of importance from a technical perspective, and makes it important level today.
