The USDCHF broke to its lowest level since 2011 last week, falling beneath a critical long-term support zone between 0.8333 and 0.8373. This multi-year floor had held through several tests over the past decade+, but once it gave way, sellers took control and drove the pair down to a low of 0.8098 before some buying interest emerged.

Since that low, the pair has been in a modest corrective phase. That momentum has carried into the early part of the new trading week, with price action in the U.S. session continuing to recover. The move higher is now approaching the old support zone, which has turned into a resistance ceiling. This area will be a key battleground between buyers and sellers.

If the buyers are to gain more control, they’ll need to not only test but break and stay above the 0.8333–0.8373 zone. Adding to the challenge is the falling 100-hour moving average, currently near 0.8340, which reinforces this resistance area. A break above both the swing zone and the 100-hour MA would signal a shift in short-term momentum toward the upside.

However, unless that happens, the broader technical picture still favors the sellers. The break of the multi-year floor is a significant development, and as long as the price remains below that former support, traders will need to respect the bearish bias that comes with it. I cover these dynamics more fully in the video above.

Source: Forex Live