The USDCHF broke above an upward-sloping trendline today along with the 38.2% retracement of the move down from the end-of-June high. Those levels come between 0.8729 and 0.8740.
Going forward, traders looking for more momentum from the break will likely be disappointed if the price were to move back below those levels. As a result, that area remains a close risk for buyers looking for more upside momentum.
On the top side, the 50% midpoint of the same move lower comes in at 0.8784. Getting above that level would open the door for further momentum in the USDCHF today and going forward.
Overall the buyers are more in control above the 38.2% retracement in the short term, but they have more to do if they are to keep increasing trading control.
This article was written by Greg Michalowski at www.forexlive.com. Source