The USDCHF traded sideways and then moved lower on Wednesday before finding support near 0.89347, basing and moving to the upside. The Swiss National Bank kept rates unchanged on Thursday helping to propel the price even higher, with the price moving above its 200-day moving average of 0.90334.
The surge on Thursday did find willing sellers near a swing area in the 0.9073 – 83 area, and the subsequent correction did take the price back below the 200-day moving average but support near 0.90165 held, the price moved back above the 200 day MA and in today’s trading support buyers have kept the price comfortably above that MA level.
Close risk is a move below the 200-day MA. Absent that, and the buyers are in control on the break, and traders can expect more upside probing in trading next week.
On the topside the 0.9073 – 0.9083 is the next target to get to and through followed by a swing area between 0.9113 and 0.9119. The end may hide 0.91465 would be the next target after that.
Break above the May 31 high and traders will then eye the 38.2% retracement of the move down from the October 2022 high. That level comes in at 0.9163 (see daily chart below). Moving above that level would open the door further for additional corrective gains in the pair to the upside.
This article was written by Greg Michalowski at www.forexlive.com. Source