The USDCHF currency pair recently broke to its lowest level since 2011, dipping below a crucial long-term support zone between 0.8333 and 0.8373. This area had withstood several tests over the past decade, but once it was breached, sellers dominated, pushing the pair down to 0.8098 before some buying interest reappeared.
Following this low, the pair has been in a modest recovery phase. Early in the new trading week, U.S. session price action continued to climb, approaching the old support zone now acting as a resistance. This zone will be a key area for buyers and sellers to contest.
Resistance Challenges
For buyers to gain further control, they must break and maintain levels above 0.8333–0.8373. Adding difficulty is the falling 100-hour moving average, near 0.8340, reinforcing this resistance zone. Breaking above both the swing zone and the 100-hour MA would suggest a shift in short-term momentum.
Without such a move, the broader technical outlook remains bearish. The breach of the multi-year floor is a notable event, and as long as prices stay below this former support, the bearish perspective prevails.
The article describes a major technical move in the USDCHF currency pair that recently sank through a long-standing support level not touched since 2011. This zone, stretching between 0.8333 and 0.8373, had proven resilient across several previous downturns, acting almost like a floor that markets respected. However, once broken, the response was swift—sellers took over and drove prices sharply lower, eventually bottoming at 0.8098 before fresh buying started to emerge.
Short Term Momentum
The area that once held the price up is now being retested from below, and the market has started to hover just under that old range, turning it into a resistance. It’s common for old support to flip into resistance once broken, especially when it’s been broadly respected for so many years. Early week trading saw a gradual push upward, with the price returning towards that 0.8333 to 0.8373 pocket where price reactions will likely remain intense.
On the technical side, Bullard notes that reclaiming and closing above the old zone wouldn’t be enough on its own. The 100-hour moving average is falling and now aligns closely with this area, giving sellers a more fortified defence line. If we see price push decisively above that moving average, and it stays above the previous support now turned resistance, that would start to change the short-term direction. Until that scenario occurs, the original downside break remains in control.
The key takeaway here isn’t just the price action itself but the context around it. We broke through a level that’s been supporting this pair for over a decade. That changes the tone. We can’t treat this break as a short-term fluctuation; instead, continued hesitation below 0.8373 keeps downward pressure in focus. For now, a bearish bias is not only logical but required, unless higher levels are reclaimed and held convincingly—a task that is proving anything but simple.
Short-dated futures and options tracking this pair should consider the importance of this failed support area. We’ve already seen compressed volatility awaken as price returned to retest the zone from below. Positioning around this level requires precision; selling into rallies around 0.8340 to 0.8370 with tight risk management may find support in a still-intact broader momentum pattern until proven otherwise.
Keep monitoring the response at these levels—it’s not just about whether price touches them, but how firmly it reacts when it does. Momentum tools and volume spikes at this zone offer further confirmation of intent.
