Yesterday, the USDCHF pair bounced around the 0.8755 level following a rate cut from the Swiss National Bank, which weakened the CHF. The price climbed above key moving averages, including the 100-hour and 200-hour moving averages, suggesting potential bullish momentum.
During the Asian session, the USDCHF rose toward 0.8845 but encountered sellers, retreating below the 200-bar moving averages while finding support near the 100-hour MA. The balance between buyers and sellers is evident at these technical levels.
Current Price Action
Currently, the price remains above key moving averages, indicating a short-term upward bias. A sustained move above 0.8845 could lead to a target of 0.8862, while a drop below the 200-bar moving averages would shift control to sellers.
Support levels are identified around the 200-hour and 200-day moving averages near 0.8810, while resistance remains at 0.8845 and 0.8862. If the price surpasses recent highs, further targets include the 0.8895 to 0.8915 resistance zone.
Conversely, a failure to break resistance may result in a pullback toward the 100-hour MA, with further downside pressure below 0.8780 potentially opening new opportunities for sellers.
The Swiss National Bank’s rate cut has clearly had an effect, pushing the franc lower and giving the pair room to rise. With the price remaining above key moving averages, the short-term outlook leans towards continued buying interest. However, recent price action suggests that traders are still hesitant to commit beyond certain levels.
Markets saw an initial push higher during the Asian session, but the inability to sustain momentum above 0.8845 exposed underlying selling pressure. The move back below the 200-bar moving averages highlights a tug-of-war between those betting on further gains and those expecting a return to lower levels. Buyers are still holding their ground near the 100-hour moving average, showing that demand exists at these technical markers.
Key Levels To Watch
Upside targets remain unchanged, with attention on whether the pair can maintain strength above its latest resistance levels. A decisive move beyond 0.8845 could encourage more buying, reinforcing a possible push toward 0.8862. If bullish momentum keeps building, a broader test of the 0.8895–0.8915 area would come into focus. But hesitation near resistance could limit progress, keeping trading confined within recent boundaries.
On the downside, maintaining price action above the 200-hour and 200-day moving averages near 0.8810 is key. Should that support give way, selling pressure could increase, particularly if the price moves below 0.8780. A drop beyond this threshold might shift sentiment quickly, opening the door for further declines. While recent setbacks have found buyers near key moving averages, the ability for them to sustain control over the coming sessions remains in question.
