As the US trading session draws to a close, the USD/CHF has reached a key swing target area between 0.8818 and 0.88267. This level is crucial for both buyers and sellers. For dip buyers, it offers a low-risk entry point; if the price falls below this range, exiting is advisable to avoid potential market breaks. Sellers, on the other hand, aim for this level to be breached, with the next target being the 50% retracement at 0.87777.
Should the price rebound, overhead resistance lies near 0.8883, which aligns with the 200-day moving average and the 38.2% retracement from the December low. Breaking below this level earlier today signaled sellers to push further downward.
Throughout the day, sellers have largely dominated. However, as the session ends, the aforementioned key area may act as a potential stall point. Traders will closely monitor this zone for insights into the next trading day.
This article was written by Greg Michalowski at www.forexlive.com.
