Tests a swing area….

The USDCHF as point to a new session low and in the process is testing a swing area between 0.92127 and 0.92222. On March 4, the price broke higher and based in that area before surging to the upside. Swing lows on March 16, March 17, March 22 and March 23 all based in that area.  Traders may look to lean against the swing floor area (risk is defined and limited against the area) with stops on a break below. 

 

The pair last week moved steadily to the downside. The bottom was on Thursday. On Friday, the price did correct to the upside, but found sellers against the 200 bar MA on the 4-hour chart (the stepped green line overlaid on the hourly chart above).  Sellers against that level, kept the sellers more control and the price did move toward the lows by the close.   

Today after a rally in the Asian session, the price action has turned lower over the last eight or so trading hours.  

On the move lower today, the price has dipped back below the 38.2% retracement of the move up from the February 15 swing low (the trend higher started back on that date).  That retracement level comes in at 0.92423. The price has stay below that retracement level over the last 5 hours of trading.  If the sellers can keep below that level, the sellers remain more control and they may be able to push below the aforementioned floor area.  For now, there is a bit of a battle between the two technical levels (areas). 

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