The USDCHF experienced a downward trend over the past three trading days, staying below both its 100 and 200-hour moving averages in the process. Although the price neared these moving averages on Friday, sellers took control and led the currency pair to close near its lows. This selling pressure intensified on Monday, pushing the price towards the low levels seen on April 13th and 14th.
During early European trading today, the USDCHF reached a low of 0.8860, just 1 pip short of the April 13th low at 0.88591. Buyers appeared to lean against this level, eventually leading to a more forceful rebound. However, this upward momentum has now reached the falling 100-hour moving average at 0.89235. The currency pair's high reached 0.89264, just above the 100-hour moving average but still below the falling 200-hour moving average at 0.89325 (green line).
For buyers to gain control, a sustained move above both the 100 and 200-hour moving averages is necessary. Last week saw a brief period of success, with the price staying above the 200-hour moving average for three hourly bars. However, this momentum waned, and the price fell once more.
Now, with both moving averages at lower levels, the hurdles may be easier to overcome, but the overall bias remains to the downside until broken. It remains to be seen whether buyers can successfully push above the key resistance levels and take back more control. Key level for both buyers and sellers. So far, the sellers are successful in defending the resistance levels.
