The fall yesterday found support at daily trend line
The USDCHF fell sharply yesterday and in the process cracked below the 50% midpoint of the 2021 trading range at 0.91144, and swing lows going back to August near the 0.9100 level (the low of Friday also tested the 0.9100 level).
However, the move lower yesterday ran into trendline support at 0.90883 (see daily chart above). The low price reached 0.90872 and bounced higher today. The aforementioned 0.9100 level and the 50% midpoint at 0.9144 have been rebroken on the bounce, forcing sellers to reconsider their shorts (sellers turned the buyers).
Looking at the hourly chart below, the price is currently testing/breaking above its 100 hour moving average (blue line) at 0.91393 (as I type the pair trades at 0.9142). The 200 day moving average is just above at 0.91494.
Yesterday that key daily moving average level was also broken on the move to the downside. Getting back above it would hurt the sellers even more. Remember, the price trended lower yesterday and broke below some key levels. However, those sellers or forced to reconsider on the bounce back above the 0.9100 level and the 50% retracement level today. Getting above the 200 day moving average be another more bullish bias tilt.
