The USDCHF tumbled sharply today, breaking decisively lower as U.S. dollar sentiment was hit hard by a combination of weaker-than-expected jobless claims, lower GDP and a federal court ruling blocking Trump’s “Liberation Day” tariffs (even though it might be temporary). The twin blows undermined the USD across the board, driving risk flows to the downside in the greenback.
Technically, buyers attempted to push the pair higher earlier in the week but stalled in the swing area near 0.8318–0.8333. That rejection zone has consistently capped rallies going back to April and once again proved too strong for buyers despite the failed break. The reversal was swift and steep.
In today’s move, the pair broke below a key cluster of support:
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The 200-hour moving average at 0.8267
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The 100-hour moving average at 0.82478
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The 50% midpoint of the April-May range between the MAs at 0.82571
With those supports broken, bearish momentum has increased and eyes now turn to the 61.8% retracement near 0.82056. That is between another swing area between 0.8193 and 0.8212. Earlier this week, the price did break below that level (on Tuesday) but it was quickly rejected starting the move higher. Another test should find support buyers.
Key Levels:
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Resistance: 0.8267 (200-hour MA), 0.83087 (broken 38.2%) 0.8318 to 0.8333 (swing area from red numbered circles)
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Support: 0.82056 (61.8% retracement), 0.8193 to 0.8212 (swing area)
Summary:
USDCHF broke down hard today as soft economic data and a legal setback to U.S. tariffs triggered broad USD selling. The pair sliced through multiple support levels, turning the bias more bearish with room to test deeper support near 0.8205. Only a move back above the 100- and 200-hour MAs would ease the downside pressure.
This article was written by Greg Michalowski at www.forexlive.com.
