The USDCHF climbed yesterday as weekend tariff news fueled US dollar buying. However, the rally stalled just four pips shy of the January high and key resistance at 0.9200, where buyers turned to sellers. A 30-day tariff reprieve for Mexico, followed by a similar move for Canada, sent the pair lower toward the 100-hour moving average (blue line in the chart below). Buyers leaned and bounced into the European session.
After an initial bounce, sellers regained control, driving the price below the 100-hour MA at 0.91034 this time. Momentum continued to build into the US session today, pushing the pair below the 50% retracement of last week’s rally at 0.9081 and the 200-hour MA at 0.9076—both of which now act as resistance. Staying below these levels keeps sellers in control.
On the downside, the next key targets are the 61.8% retracement of the recent move higher at 0.90537, followed by the swing level at 0.90209, which also aligns with the 38.2% retracement of the move up from December’s low. Sellers are making a move—can they sustain the momentum?