The USDCHF began the week by basing on Monday and Tuesday near last Friday’s lows. Holding that level gave buyers the confidence to push higher. A break above the 100-hour and 200-hour moving averages on Tuesday turned sentiment bullish, with traders eyeing the swing area between 0.7986 and 0.7994. When the pullback that day held support at the hourly MAs, it provided another catalyst for upside momentum.
The rally extended yesterday, with price moving above the 61.8% retracement of the decline from the August 1 high at 0.80396, which now serves as nearby support. Buyers carried the move up to a key swing area between 0.8071 and 0.8076, defined by prior highs from late August and early September. The week’s high stalled just shy at 0.80755.
Today, the pair has eased back with an intraday low at 0.8048, leaving the day’s range a narrow 20 pips. A move below 0.80396 would hand sellers more control and signal a deeper correction. Conversely, holding above that retracement keeps buyers in charge, with a break through 0.8076 opening the door toward the next target at 0.81027.
This article was written by Greg Michalowski at investinglive.com.