USDCHF has been moving sideways recently, creating a range between support at the .9575 area and resistance at .9725. 

The simple moving averages are criss-crossing, confirming the range-bound market behavior.

Price just came off a test of resistance and may be headed for the bottom for now. However, stochastic is indicating oversold conditions already, which means that buyers could jump back in and push for another test of .9725.

A continued drop could lead to a test of support once more or possibly the mid-range area of interest at the .9650 minor psychological level. MACD is heading down, indicating that there’s a bit of selling pressure left.

Event risks for this USDCHF setup today include the release of US CB consumer confidence data, which might show an improvement from 94.5 to 95.9. There are no major reports lined up from Switzerland today, leaving risk sentiment as a main driver of price action.

By Kate Curtis from Trader’s Way