RSS USDCHF bounces off swing area support. Tests the 100 hour MA at 0.90742. Key barometer.

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 RSS USDCHF bounces off swing area support. Tests the 100 hour MA at 0.90742. Key barometer.

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Swiss CPI data met expectations today, coming in at -0.1% month-on-month and 0.6% year-on-year. These figures reinforce the dovish stance of the Swiss National Bank, likely supporting the USD/CHF amid ongoing concerns about higher U.S. inflation.

In trading, the pair - before the data - dipped to a swing level around 0.90217, defined by highs from December 18-19 and lows from December 31 (refer to green circles on the chart). This level marked stronger buyer support compared to yesterday’s dip, which extended to a lower swing area before rebounding (see red circles).

The subsequent recovery pushed the price toward the 100-hour moving average (blue line) at 0.90745, a key resistance level tested yesterday after the breakdown. The 100-hour MA now serves as a critical pivot for buyers and sellers.

A break above this level would strengthen the bullish bias, favoring further gains for buyers. Conversely, if sellers defend this level, the price could rotate back toward the 200-hour MA (green line), where dip-buying sentiment will likely be tested again. The 200-hour MA remains a key support for determining the market's next move.

Buyers remain in control.

This article was written by Greg Michalowski at www.forexlive.com.
 
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