The USDCHF is making a “break for it” above its 38.2% retracement of the move down from the early July high. That level comes in at 0.86312. The current price is trading at 0.8639.
Today, the price also moved above a swing area between 0.86078 and 0.8619.
That area is a more conservative risk level for buyers. Staying above is more bullish. Moving below and I would expect that the buyers on the break would be disappointed and look to exit their position on the lack of upside momentum (at least in the short term).
Buyers are making a play. Can they keep the upside momentum going with a 50% midpoint of the same move lower at 0.87108 as the next major target.
This article was written by Greg Michalowski at www.forexlive.com. Source