USDCHF bouncing off swing level support today

The USDCHF peaked on Tuesday at 0.92776. That was short of the December high at 0.92937.

On Wednesday, the price fell sharply and in the process cut through its 100 day MA (blue line on the daily chart above) at 0.92128, and the 200 day moving average at 0.91629. Yesterday the price fell for the third consecutive day and reached a swing area on the daily chart between 0.9081 and 0.91014. The low price for the week was reached yesterday at 0.9091.

Today the price has corrected higher and currently trades at 0.9125. That is taken the price back above the 50% midpoint of the 2021 trading range at 0.9144. The low today also respected the swing area for the second consecutive day. Looking at the green numbered circles and lower yellow area, there is a solid floor that developed.

Drilling to the hourly chart, the recent price high is testing the swing low from Wednesday’s trade at 0.9129. Move above that, and the door opens for a retest of the highs from yesterday at 0.91479.

What would disappoint the dip buyers?

Close support would come against the January 3 low at 0.9115. That is also close to the 50% midpoint of the 2021 trading range at 0.91144.