Initial hold of the 200 hour MA, led to a correction to the swing area
The USDCHF traders did the right thing to keep the sellers in control.
“If the support buyers hold the level (i.e. the 200 hour MA), and the price can trade more comfortably above the 0.9202 level, it may attract more buying/covering. The next upside target would look toward the 0.92149 to 0.92216 area”.
That is exactly what happened. The price correction rose to 0.92205 and reversed back lower.
With the price now below the 200 hour moving average (green line), sellers would be looking for the next steps to be taken. Getting below the 0.9184 to 0.9188, is the 1st step. The next target would come against the 50% retracement at 0.9173 and the swing area between 0.9169 and 0.9172.
Time for the sellers to take more control and keep the pressure on.