USDCHF recently busted through the resistance at the .9300 major psychological mark and is testing another ceiling at the .9450 handle. Price might be in for a retest of the broken resistance on this pullback.

The Fibonacci retracement tool shows more levels where buyers might be waiting. Price is already testing support at the 38.2% Fib near the .9350 minor psychological support, but a larger pullback might still reach the 50% level at .9311. The 61.8% level lines up with the 100 SMA dynamic inflection point which adds to its strength as support.

On the subject of moving averages, the 100 SMA just crossed above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. If any of the Fibs are able to keep losses in check, USDCHF could make its way back up to the swing high or higher.

Stochastic is on the move down to show that selling pressure is in play, but the oscillator is approaching the oversold region to signal exhaustion. Turning back up would confirm that bullish pressure is returning.

However, RSI has more room to head lower before reaching the oversold region, so the correction could keep going for a while.

There are no major reports due from both the US and Switzerland today, so USDCHF price action could hinge mostly on market sentiment. It’s worth noting, though, that the Fed just recently hiked interest rates by 0.25% and signaled scope for more hikes later in the year.

This might be enough to keep the dollar supported against the Swiss franc, especially since Europe could face the brunt of the crisis from Russia and Ukraine. Although tensions seem to be easing recently, sanctions on commodity and financial markets might have spillover effects to the rest of Europe.