The USD/CHF has been testing the downside, with attempts to break below the swing area between 0.8772 and 0.8776 on Friday and Monday. Both breaks failed, and rallies were capped at the swing area between 0.8794 and 0.8799. In today’s trading, the pair initially dipped during the Asian-Pacific session, finding support near the lower end of the swing area at 0.8772, with a low of 0.87705, before rebounding.
The recovery pushed the price above the higher swing area and the 0.8800 level, but it is struggling to break above the falling 100-hour moving average at 0.88016.
The sellers had their shot on Friday and Monday but failed to sustain control. Now, the buyers are taking their turn, aiming for a break above the 100-hour moving average to maintain momentum. If successful, the next targets include 0.8822 (the 100-hour moving average) and 0.88387 (the 100-bar moving average on the 4-hour chart). However, a failure to hold above 0.8800 could hand momentum back to the sellers.
This article was written by Greg Michalowski at www.forexlive.com. Source