If you are a buyer of the USD – of the USDCHF – this is the place to buy.
Why?
The old “Red Box” (see chart below) that confined the trading range going back to August 20, peaked at 0.85368. The price is down testing that area and also the 38.2% retracement of the move higher from last week’s low. That level comes in at 0.85269.
My guess is that this area should find buyers if the buyers are to keep control after the break higher on Friday. iI buyers come in here and push the price back higher (watch for a move above 0.8550), that would be a good base to build a run back to the upside.
Conversely,if the price starts to move below the 0.85368 level and also get below the 38.2% retracement at 0.85269, the buyers would be disappointed on the failed break.
Key level right here for the USDCHF.
This article was written by Greg Michalowski at www.forexlive.com. Source