The USDCHF is extending to the downside, with price action breaking through a series of key technical levels that had previously acted as support. The pair has now moved below the 200-day moving average at 0.79428, the swing low from last week at 0.7903, and the 100-day moving average at 0.7888, and is probing below the 38.2% retracement of the 2026 trading range at 0.7873. This step-by-step rotation lower reflects a market where sellers are increasingly taking control.That said, continuation is key. A sustained move below the 38.2% retracement and the 100-day moving average would add further confirmation to the bearish bias and give sellers more confidence to press the downside. If that happens, the next key target comes in near the 0.7830–0.7840 area, which is supported by prior swing levels on both the hourly and daily charts. A break below that zone—along with the 50% midpoint of the 2026 range at 0.78216—would strengthen the case for a deeper move lower.On the flip side, sellers still need to guard against a failed breakdown. A move back above the 100-day moving average (0.7888) and especially the 0.7903 swing low would start to erode downside momentum and could disappoint sellers who are leaning on those levels as risk-defining resistance.On the fundamental side, the SNB has made it clear it is not comfortable with excessive CHF strength, which is an important backdrop for this pair. The current move lower in USDCHF is more technically driven than a classic flight-to-safety bid into the franc, and that distinction matters. However, the CHF strength suggests the downside may have limits if policy concerns begin to weigh more heavily.That said, traders should stay focused on the levels. If the price starts to reverse and reclaim previously broken support levels, it would signal that sellers are losing momentum and could give buyers renewed confidence. Those broken levels become the barometer—stay below keeps sellers in control, but move back above starts to shift the bias.For now, however, the sellers remain firmly in control, with the technical breaks driving the price action. In the video above, I walk through these levels in detail and explain why they matter as key risk-defining areas for both buyers and sellers going forward. This article was written by Greg Michalowski at investinglive.com.