The USDCHF is moving sharply to the downside as sellers take firm control. The pair moved below the 50% midpoint of the move up from the May low. That midpoint level comes in at 0.8983 and is now close risk.
On the downside, a swing area between 0.8969 and 0.89769 is being tested. Move below opens the door for further downside momentum.
Looking at the 4-hour chart below, the price today fell below its 200 bar moving average at 0.89964. Last week, the price came down to that moving average, and found willing buyers against the moving average level. The break today saw the price retest the level before rotating back to the downside. Going forward, that moving average line will be a key resistance and bias-defining level. Stay below keeps the sellers more control on the 4-hour chart.
