Sellers push the price back in up and down area going back to January
The USDCHF broke below a key swing area between 0.89166 and 0.89212. That area was a ceiling going back to January 20 (see yellow area and red numbered circles). On February 1, the price extended above that ceiling and raced higher. The run to the upside stalled on Friday and the price has been down since that time (today is the 4th day down for the pair).
Since breaking below the swing area, the price has retested the level on a few occasions, only to find sellers against it. I'm not surprised given the levels of importance. Going forward stay below keeps the bears more in control.
On the downside, the pair is testing the low from last week's trading (Monday first hour of trading low for the week) at 0.88935. A move below that level would have traders targeting another up and down swing area going back to January 27 (see green numbered circles) between 0.8868 and 0.88737.
Admittedly, the price is not running on the break. Nevertheless the sellers our in control below the 0.89212 level. Traders waiting for the next push lower as long as resistance swing area holds.
