50% midpoint on hourly chart at 0.89413
The CHF is the strongest of the major currencies and the move to the downside has been reflected in the USDCHF.
The pair has been trending to the downside with some technical levels being breached on the way.
The 1st level was nearly 0.89188. That was a swing level going back to February 2. The most recent swings have created a floor at the level (see green numbered circles at 3 to 7). The break below the floor started the bearish momentum.
The next key level broken was the 200 hour moving average and 38.2% retracement near 0.8966. The pairs last gasp to move higher off those levels failed and the price marched for the downside.
The run lower has taken the price below the 50% retracement of the move up from the January 22 low at 0.89413. The low price reached 0.89297 and has bounced modestly. Nevertheless the price has been able to get back above the 50% retracement at some point during the last 3 hourly bars. However, currently the price is back below the level.
Going forward, if the price action has more momentum above the 50%, we could see the bias shift intraday with more corrective action to the upside. Until then however the next target area comes between 0.89166 and 0.89212. That area (see lower yellow area and red numbered circles). Represents swing highs going back to January 20 (and even before that are not shown).
Drilling to the 5 minutes chart below, the most recent spike above the 50% retracement on the hourly chart, also spiked briefly above the 100 bar moving average on the 5 minutes chart. The 100 bar moving average currently comes in at 0.89415. That is right near the 50% retracement level. A combination increases the levels of importance intraday. Move above the 100 bar moving average and the 50% retracement and we should see more corrective probing to the upside.
