The USDCHF last week came down to test a cluster of support including the:
- 100-day moving average
- 50% retracement, and
- Swing area
all near the 0.89000 level. Support buyers leaned against that key technical level.
Having said that on the top side, the corrective high could not breach a swing area between 0.89316 and 0.89472.
In the early Asian session today, the price was able to get above the high of that swing area had 0.8947, but failed. The subsequent move to the downside came down to a low of 0.8912 before bouncing back toward the 0.8947 level again. So far that level has been able to hold resistance. So the buyers and sellers continue to battle it out.
Needless to say would take a move above the 0.8947 level to increase the bullish bias (the price would need to stay above that level). Conversely, for sellers looking for more downside, the cluster of support remains a key level both today and going forward.
The good news is the levels are fairly clean technically. But we need the market support to break out.
This article was written by Greg Michalowski at www.forexlive.com. Source