Tests the next swing area ahead of May lows
The USDCHF has dived lower after cracking back below its 100 and 200 hour moving averages between 0.89846 and 0.89770 (see blue and green lines in the chart below). THe price has moved down toward a swing area between 0.8953 and 0.89599. That level is now being broken as I type.
The next major target on further weakness come in at the swing low from last Wednesday at 0.89393 and the May low from Tuesday at 0.89299. Moving below those levels would take the price to lowest level since February 17 (see the daily chart below). The low price from February extended to 0.88706 and would be the next major target on continued weakness.
The low price for 2021 was reached on January 6 at 0.87568.
What would hurt some of the bearish bias today to mark
A move back above the swing low from May 27 at 0.89599 would disappoint sellers and could lead to some further upside probing. Nevertheless the sellers would still hold the edge below the aforementioned moving averages above (at 0.8977 at 0.89846).
