50% retracement of the month long range also being tested

The USDCHF is trending higher and in the process is trading to a new session high. The pair is also extending toward a swing high ceiling from October between 0.91618 and 0.91644.  The high price just reached 0.91569. The pair has been up in 8 of the last 10 hourly bars (with only modest corrections on the two down bars). The range today is 69 pips which is above the 51 pip average over the last 22 trading days.  

The extension toward the ceiling and the extended trading range for the day, should give longs a low risk level to take profit (and perhaps some selling).  However a move above, should trigger stops. Risk his defined and limited against the level.

Drilling to the daily chart below, the ceiling area from the hourly chart is also a key level on the daily chart. 

Looking at the chart below,  the 50% midpoint of the range since the September 25 high is also being approached. That level comes in at 0.91627 – right around the mid-October ceiling area.  

That midpoint level increases the levels importance for both buyers and sellers. 

Stay below and the sellers maintain some control. 

Move above and the bias tilt more in that direction. 

On a break higher, the 61.8% retracement comes in at 0.9194. That would be the next target on the daily chart. Above that and the falling 100 day moving average blue line in the chart below) comes in at 0.9223. The price has not been above its 100 day moving average since May 28.

USDCHF on the daily chart



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