USDCHF moves down and looks to test the 100 day MA

The Swiss franc – like all major currencies – is running to the upside versus the greenback. The USDCH pair is currently down -1.01%. That is the largest decline since July 12.

Technically, the price started the day above its 200-day moving average at 0.89969. The CPI data sent the price racing to the downside and toward its 100-day moving average of 0.89027. The low price so far has reached 0.89143. The current price is just above that of 0.8919.

Back in October, the low price on October 24 did fall below that moving average line at 0.8898 at the time but could not maintain momentum (the price rebounded intraday and closed above the MA line). There have been no closes in the USDCHF below its 100-day moving average since September 4. It would take a move below that moving average to increase the bearish bias from a longer-term perspective.

The low price from last Monday came in at 0.89524, and that is now a close risk level for sellers. Move back above that level and there could be some additional short covering.

This article was written by Greg Michalowski at Source