Traders looking for more downside will look for the price to stay below levels now
The USDCHF has pushed lower over the last few hours, and in the process has muddied the technical waters at least in the short term.
Looking at the hourly chart, the price fell below a swing area defined by the swing high on January 10th and January 29th at 0.97613 and 0.97659, and also the 100 hour MA at 0.97593. That tilted the bias more to the downside.
If the price can now stay below the swing area, sellers looking for more downside should see more downside probing. The next target would have traders looking toward the lows from Friday at 0.9739 area. Below that, the rising 200 hour moving average at 0.97183 (green line) would be the next targets.
Move back above the 0.97659 swing level high, expect the sellers to cover. The trend over the 6 – 7 days has been to the upside. So care must be made that dip buyers come in on dips and reverse the corrective move. The good news is risk is defined for the sellers.
