The USDCHF has moved sharply lower today on the back of the weaker US jobs report, sharply lower yields, and lower stocks. The CHF tends to be a safe-haven currency in times of trouble, and that is what we are seeing in the fair today as it races away from its 100 hour moving average.
Having said that, the price of the USDCHF has now reached a key swing area between 0.8549 and 0.8579. The low price just reached 0.8576. Will the buyers come in against this area?
Often times, if risk can be defined and limited, traders will look to take profit. Others may look to trade against the trend and stick a bid in against the support. However, if the price were to break below 0.8549, I would not mess with a long.
In this video, I talk about technicals that are in play and explain why..
This article was written by Greg Michalowski at www.forexlive.com. Source