The USDCHF is trading weaker to start the week as the U.S. dollar faces broad pressure following Moody’s downgrade of U.S. sovereign credit late Friday.
From a technical perspective, Friday’s rally attempt failed to hold above the 100-hour moving average (blue line), and sellers have since taken the pair below the 200-hour moving average (green line) at 0.83496. That level now acts as close resistance.
On the downside, today’s low found buyers within a key swing area between 0.8318 and 0.8333—a former ceiling that is now serving as a support floor. Traders will look to that zone for clues about the next directional move. Holding above it keeps the door open for a retest of resistance; a break below would open the path toward the next lower target area near 0.8272.
Key levels:
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Resistance: 0.8349 (200-hour MA), 0.8375 (100-hour MA)
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Support: 0.8318–0.8333 (swing area), then 0.8272 to 0.8280 (swing area)
Momentum favors sellers, but watch the 0.8318–0.8333 floor for signs of a shift.
This article was written by Greg Michalowski at www.forexlive.com.
