The USDCHF moved higher after the CPI data this morning, but could not sustain momentum toward the topside swing target between 0.9304 and 0.9310. The high price could only reach 0.9298.
The rotation back to the downside took the price back below the 100 and 200 hour moving averages near 0.9281 (blue and green lines). The buyers gave up and the price moved lower.
The price decline took the pair into a swing area between 0.92495 and 0.92581. That area has held lows over the last seven trading days (see red numbered circles 11 through 16). The low price so far reached 0.9254.
Moving below that area is now needed to increase the bearish bias with the 50% midpoint of the move up from the August 27 low at 0.9233 and a swing low at 0.92146 as the next downside targets.
Conversely if the swing area tested currently does hold, getting back above the broken 38.2% retracement at 0.92652 would give buyers more confidence and could lead to a rotation back toward the converged 100 and 200 hour moving averages near 0.9281.