Cracks below trendline/100 hour MA and looks to test 50% midpoint
The USDCHF has seen a volatile move to the upside and back down and is now looking to test the low for the day and complete the “up and down lap”.
Technically, the price action today broke back above its 100 day moving average on the way higher at 0.8982. The high price extended up to 0.90229 which took the pair just above a swing area between 0.90127 and 0.90192. The buyers turned around and started to sell.
The break back below the 100 day moving average at 0.8982 disappointed the buyers on the break above today. The last 6 hourly bars have been lower (on the 7th bar now). That move took the price not only below its 100 day moving average 100 day moving average, but also has cracked the 38.2% retracement at 0.89648, the 100 hour moving average at 0.89597, and a trendline at 0.8955 currently. Traders will be watching the 100 hour moving average and 38.2% retracement area as resistance now. Stay below is more bearish
On the downside, the low for the day from the early Asian session came in at 0.89478. The low in the current hourly bar just reached 0.89481 just short of that low for the day. So there is a double bottom forming for the day. The pair at the low also tested the 50% midpoint of the range from the low last week to the high today at 0.89468. Buyers seem to be leaning against both support targets.
It will now take a move below the 50% for traders to increase the bearish momentum. A break will have traders looking toward the 200 hour moving average at 0.89319 and the 61.8% retracement of the same move higher at 0.89289