The USDCHF today moved down to test the lower target area defined by a swing area between 0.9848 and 0.9873 and the 200 bar MA on the 4-hour chart at 0.98431. The last time the price closed below the 200 bar MA goes back to September 16. The low price reached 0.9852 so far. The current price trades at 0.9861 between the 2 levels.
Looking at the chart above, the price fell below its 100 bar moving average during yesterday’s trade. The price decline initially stayed around the moving average level (see blue line), but below the September 27 and 28 highs near the 0.98647 level.
Staying below the 100 bar moving average and the aforementioned swing level gave the sellers the go ahead to push lower in trading today, and they did.
So far the buyers are leaning against the aforementioned support levels near 0.9843 and 0.9848. A break below would next target the 50% midpoint of the move up from the September 13 low at 0.9813.
If the aforementioned support can hold, getting back above the 0.9873 and then the broken 38.2% retracement at 0.98919, would give the dip buyers some comfort.