The USDCHF is following the USD higher today and in the process is trading into - and now above as I type - a higher swing area between 0.9658 and 0.96693.
The high price is trading at 0.9677 as I type. The pair is breaking.
That area represents the high of the up and down swing area that has confined the trading since May 23. During that time, the low reached 0.9544. The high reached 0.9669. A move above - it is breaking higher as I type - would have traders looking to the 0.96948, 0.9711 and then the 38.2% of the move down from the May 16 high.
Whereas the USDJPY is making new 20 year highs, the USDCHF has moved lower from the 2022 high reached on May 16 at 1.00637. There is room to roam to the upside in the pair if the price can now stay above the 0.9658 level (stay above that higher extreme swing area).
The red box is being broken. The buyers are making a play. Stay outside the red box is bullish.
