USDCHF struggles near key retracement level amid ongoing battle between buyers and sellers | Forexlive

Yesterday, the USDCHF reached its lowest level since June 2021, touching 0.9000(4) before bouncing back. However, selling pressure emerged near the March 13 swing low and the 38.2% retracement of this week’s trading range, which is located at 0.9075. The pair’s high yesterday was slightly above this level at 0.90756, while today’s Asian session high reached 0.90744. Sellers continued to defend the retracement level, with the current price trading at 0.9053. The day’s low reached 0.90358, which is close to the 50% midpoint of the two-day trading range.

Buyers who entered near the 0.9000 level yesterday were rewarded with a 75-pip rally but were unable to break above the 38.2% retracement level of this week’s trading range, leaving them vulnerable.

Going forward, buyers seeking further upside would prefer to see the price break above the 38.2% retracement level and head towards the descending 100-hour moving average near 0.9100. For a medium-term bullish bias, the price would need to surpass both the 100-hour moving average and the 200-hour moving average at 0.91360 (green line in the chart).

On the downside, a move below today’s low and the 50% midpoint of the two-day range would likely worry buyers and embolden sellers. The battle between buyers and sellers continues as they vie for control over the pair’s direction in the short term.