USDCHF is sharply higher but runs into swing area

The USDCHF is up about 1.5% on the day and the CHF remains one of the weakest of the major currencies today.  

On Technically, the pair moved above the 200 hour MA at 0.9110 (bullish) but stalled in a swing area between 0.91273 and 0.91373. The high price reached 0.91364 (see red numbered circles and yellow area).  If the price can extend above that level, there should be more upside, but care is warranted as the price has already moved an oversized 158 pips vs the 22-day average of 63 pips.

On the downside, with the run above the 200 hour MA at 0.9110, that level is now support.   A move back below the level is needed to hurt the bullish bias. 

For bank trade ideas, check out eFX Plus

Source link