Yesterday, the USDCHF broke out of last week’s trading range after moving above the 0.7994 level (see red box on the chart above) and extended gains through the 100-hour moving average (see blue line on the four hour chart above).
Today, the bullish momentum continued, taking the price up to a key swing area between 0.80388 and 0.80554.
A break above this resistance zone would open the door toward the 200-bar MA on the 4-hour chart at 0.8077 and above that the 38.2% retracement level at 0.8102 — both of which are key upside targets. If the buyers are to take back more control, those levels need to be broken. Since the May high, the price of the USDCHF trended to the downside from 0.8475 to 0.78714 over a seven week period. The trend move also took the price to the lowest level going back to 2011..
Close support now comes in at 0.80174, and below that the swing area between 0.7986 and 0.7994.
Buyers are making a play. Can they keep the momentum going.
This article was written by Greg Michalowski at www.forexlive.com.