The move to new 2020 lows below 0.8981 has the pair trading at near 6 year lows
The USDCHF cracked below the low price from early November at 0.8981, and in doing so, the pair moved to the lowest level since January 2015 nearly 6 years ago. Bearish. The sellers remain in firm control below that level.
Drilling to the hourly chart below, the move lower this week started after the pair tested its 200 hour moving average (green line in the chart below) at the close of the day on Monday. Yesterday sellers trended the market to the downside with the pair moving below the Monday low at 0.9019, and then a downward sloping trendline around the 0.9007 level.
The low price in the Asian session today tested the lows from early November, and found dip buyers on the 1st look. The rebound higher stalled ahead of the low from Monday at 0.9019, and sellers reentered.
Currently the price is trading below a trendline at 0.89715. And also below the key swing low from early November at 0.89818. If the buyers are to take more control from here, getting back above the old low is the most important 1st step. That would just be the start of a potential corrective move higher.
Until then, the sellers remain in more control as the pair probes levels not seen in nearly 6 years.
