The USDCHF was the biggest mover to the downside yesterday, breaking below the July 1 low at 0.78714 and extending to its weakest level since September 2011 — a 14-year low. That momentum carried into today, with the pair posting a fresh yearly low at 0.78544 before finally stabilizing.
Since the new low, the market has shifted into consolidation, with a modest corrective rebound taking shape. The bounce briefly pushed the pair above both the 100- and 200-bar moving averages on the 5-minute chart, giving buyers a short-term foothold and raising hopes for further recovery.
The corrective rally, however, stalled near 0.78784, and price action has since turned sideways and choppy. Trading has been contained within a relatively tight 16-pip range between 0.78621 and 0.78784, leaving both buyers and sellers looking for a clearer directional break.
In the video above, I begin with the longer-term weekly chart to emphasize the significance of the break to 14-year lows. I then move to the hourly chart for broader technical context and finish with the 5-minute chart, where traders are most likely to find short-term momentum clues.
