As the forex market sleepwalks as traders await the US jobs report at 8:30 AM ET, the USDCHF is hanging around its neutral area defined by the 100-hour moving average of 0.90538 and 50% midpoint of the October trading range at 0.90658. That area will be the barometer for buyers and sellers through the jobs report. Moving above 0.90658 would be bullish and have traders looking toward the upper swing area between 0.91079 and 0.91228 .
Conversely, a move below the 100-hour moving average would have traders targeting both the 200-hour moving average at 0.9009, and its 200-day moving average at 0.9005. That 200-day moving average child support on Monday and Tuesday before moving higher. It has now been joined by the rising 200-hour moving average.
Going into a key economic release like the US jobs report increases the event risk. Often times the price will settle near a neutral area and wait for the next shove. The levels as mentioned in the analysis above, are those shove targets.
- Break above 0.9122 would be more bullish.
- Break below the 200 day moving average at 0.9004 would be more bearish.
This article was written by Greg Michalowski at www.forexlive.com. Source