The USDCHF is extending sharply to the upside after buyers leaned against a strong technical support zone during the Asia-Pacific session. The pair found willing buyers near a confluence of support defined by the 100-hour moving average and the 100-day moving average, helping to solidify the bullish bias and launch the latest rally higher.
The move higher initially ran into resistance near a swing area between 0.7868 and 0.7878. Sellers briefly defended that zone and forced a modest corrective move lower, but downside momentum quickly faded. Buyers stepped back in, pushed the pair back above the swing area, and turned that former resistance zone into a new support target.
With the pair now trading above 0.7868–0.7878, the focus shifts toward the next major upside target at the 50% midpoint of the move down from the March 31 high at 0.79014. A break above that midpoint level would increase the bullish momentum further and have traders looking toward the next key technical target.
That next upside objective comes in at the 200-day moving average at 0.79187. The USDCHF has traded below its 200-day moving average since breaking beneath it on April 8. Since that break, multiple corrective rallies have failed before seriously testing the level. As a result, the 200-day moving average now becomes a critical barometer for the broader bias. A move above the level — and more importantly, the ability to stay above it — would give buyers more confidence and shift the longer-term technical picture more firmly in their favor.
For now, the key support area for buyers comes in between 0.7868 and 0.7878. Staying above that zone keeps buyers in firm control and maintains the bullish momentum heading into the next technical tests higher.
This article was written by Greg Michalowski at investinglive.com.
