Trades to the lowest level since May 2015
The USDCHF is following the up and down pattern today seen in many currency pairs vs the USD.
That up and down price action, however, does come after trading to the lowest level since May 2015. In the process, the price moved below swing lows from June 2015 at 0.91499, February 2018 at 0.91865, and the 2020 low price from March 8 at 0.91747. The low price today reached 0.91391, but has bounced back into that swing area (lower yellow area between 0.91499 and 0.91865).
If the price is to bottom near this swing area, staying above the 0.91499 level would be eyed today. A move below would have traders looking toward the lower May 2015 low at 0.90708
Drilling to the hourly chart, the up and down price action today did fall below a lower trendline at 0.91505. That was very close to the June 2015 low at 0.91499. However, the momentum below that line could not be sustained despite 2 separate breaks lower (see red chaded area on the hourly chart below). That increases that levels importance going forward today for both dip buyers and the sellers (who remain in control).
On the topside, the 0.9186 area is a swing level over the last 3 trading days. A downward sloping trendline is also approaching that level. If buyers are to take control they need to get above that level at the minimum. If that can be done, the falling 100 hour moving average at 0.92066 (blue line in the chart below would be another target to get back above. The price moved below the 100 and 200 hour MAs back on July 17th and has not been tested since that break. The consolidation over the last few days has allowed for the moving average to catch up to the price (sort of). It is in play.
