The USDCHF is trading at a new session low, reaching its lowest level since January 2021 and breaking the previous record lows for 2026. This downward movement has caused the price to fall below the double bottom from April at 0.8859. It's worth noting that the price bounced off the April 13 low at a similar level yesterday. The subsequent rally yesterday reached the falling 100-hour moving average (blue line in the chart above) but failed to extend above it with increased momentum during the Asian and early European sessions today.
As the price could not gather enough momentum to reach the 200-hour moving average (the next key target) currently at 0.8935 (green line in the chart above), buyers became frustrated, leading to a reversal and that bias dominated selling activity during the European session (in line with the weakening USD). The fall below the 0.8859 level has seen the price extend to 0.8851 so far.
Currently, the price is fluctuating above and below the double bottom level, with other lows up to 0.88662. In the short term, traders should monitor this area (see red numbered circles in the chart above) for intraday clues. The optimal outcome for sellers would be to maintain the price below the 0.8866 level. However, if the market begins to push above that level with increased momentum, a snapback rally may occur due to the failed break. Watch that area. Sellers are making a play but sellers need to show they mean it too.
