The USDCHF surged higher yesterday, breaking above key technical levels and gaining upside momentum into the close and early into today’s trading session. The rally carried the pair into a swing area between 0.81468 and 0.81554, where sellers emerged to cap the advance.
The breakout began yesterday after the pair pushed through resistance near 0.80628, and then cleared the 38.2% retracement level at 0.8102. That move triggered additional buying, driving the price toward the upper swing target. However, in the early hours today, the market began to pull back, as buyers took profit and momentum shifted to the downside on expectations of a corrective move.
The decline stalled near 0.8111, just above the 38.2% retracement at 0.8102, now serving as an important short-term support level. As long as the price holds above that retracement, buyers remain in control. A break below, however, could signal a failed breakout, inviting disappointment and potential liquidation by recent longs.
On the topside, getting above 0.8155 would have traders targeting the 50% midpoint at 0.81732.
