The USDCHF fell sharply on Friday after the US jobs report, and in the process broke below key moving averages including the it’s 200-day moving average at 0.9002, and it’s 100-bar moving average on the 4-hour chart (currently at 0.8997).
The momentum to the downside continued today with the price moving down to a low of 0.89528. That got within 5 or so pips of the high of a swing area between 0.89316 and 0.89472 (see red number circles on the chart below). Getting below that area would increase the bearish bias, and have traders looking toward the 100-day moving average at 0.88988.
Conversely, as long as the 2 moving averages (200-day MA and 100 bar MA on the 4-hour chart) above can hold resistance, the sellers would maintain control at least in the short and medium-term for the USDCHF.
This article was written by Greg Michalowski at www.forexlive.com. Source