The USDCHF moved lower after the weaker than expected US data today. However, after breaking below its 100-hour moving average at 0.90134, its 200 bar moving average on the 4-hour chart at 0.89972, support buyers came in against the key 100-day moving average at 0.89836.
Recall from Friday last week and Monday’s trade this week, the low prices on those two trading days did find support buyers against that 100-day moving average. So there has been a history of support from traders against that key daily moving average level.
Going forward it would take a move below that 100 day moving average and staying below to give the sellers more control. Absent that and the move is a corrective move in what has been a bull market over the last few weeks for the USDCHF.
On the top side getting above the 100-hour moving average at 0.90134 is needed to confirm that the dip buyers are taking back control after the selloff today.
This article was written by Greg Michalowski at www.forexlive.com. Source