The USDCHF continued its downward momentum from yesterday’s US session, pressing into the key swing area between 0.7986 and 0.7994. Sellers managed to push the low to 0.7993, but the downside stalled as buyers leaned against that level to defend support. The reaction there has proven important, as the pair has since reversed course with a steady climb higher over the past several hours.
The rebound gathered further traction following the release of better-than-expected US initial jobless claims and a stronger GDP revision, which gave the dollar a lift across the board. That move helped USDCHF reclaim the 50% midpoint of the trading range since the July 1 low, while also extending beyond the 0.8017–0.8023 swing zone. This shift leaves traders questioning whether the latest bounce is a short-term correction or the start of something more sustained.
It’s worth noting that price action has been choppy and indecisive across the major currency pairs recently, and USDCHF is no exception. Over the last three to four weeks, the pair has repeatedly traded above and below the 100- and 200-hour moving averages, keeping directional conviction limited. Despite this whipsaw behavior, the broader tilt remains to the downside, with the 100-hour moving average continuing to slope lower.
Looking ahead, the 100-hour moving average at 0.80356 now represents the next upside resistance target. A move above this level would encourage buyers to extend the rebound, while failure to break through could see sellers reassert control and push the pair back toward the earlier swing lows.
The video above outlines the key technical levels in play and explains why from a technical perspective
